8. The tragedy of the commons is the (A) undersupply of a public good due to people not wanting to pay for a publicly common good. (B) disappearance of certain markets due to the lack of willingness to pay by individuals, leading to collective misfortune. (C) depletion of a common resource due to individually rational but collectively inefficient over- consumption. (D) notion that common resources are generally under consumed and therefore not produced by suppliers due to artificially low demand.

10. Ethan enjoys buying books and going to the movies. He has income of $150 to spend on these two goods each month. The price of a book is S15 and the price of going to the movies is also 815. He currently consumes four books and six movies a month. If the price of a book increases to $20, then, (A) the substitution and income effects would both predict Ethan would consume more of both goods. goods. (B) the substitution and income effects would both predict Ethan would consume less of both (C) the substitution effect would predict Ethan would consume more books and less movies, and the income effect would predict he would consume less of both. (D) the substitution effect would predict Ethan would consume less books and more movies and the income effect would predict he would consume less of both.

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