When the government bans a good:
A) it is attempting to solve the nonexcludability problem.
B) it makes acquiring that good illegal.
C) the cost of breaking the ban changes the trade-offs consumers face.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

When the government bans a good, it is attempting to solve the nonexcludability problem by making it illegal to acquire the good. This changes the trade-offs consumers face because the cost of breaking the ban increases, making it more difficult to access the good. Therefore, all of the statements are true.

When the Government Bans a Good