In the Following Figure, the First Panel Shows a Market

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S₁: Supply curve of automobiles prior to regulation
S₂: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-In the market for resources, demand and supply:

A) do not behave in the same way as they do in product markets.
B) behave in exactly the same way as they do in product markets.
C) curves usually do not intersect at equilibrium.
D) are both controlled by firms.
E) are both controlled by households

Correct Answer:

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