True/False/Uncertain. Evaluate whether the following statements are true, false or uncertain. Again, make sure to explain your reasoning
a. If a drop in the price of smartphones from $160 to $120 increases the quantity sold from 6,000,000 to 9,000,000 demand is price inelastic.
b. In the presence of a positive externality, a competitive market produces too little of the good.
c. In his FRBSF Letter, Charles Jones’ prediction that the US will continue to devote more of its resources to health care (Rising % of GDP) requires that the marginal utility of human life is constant
d. Because life is the ultimate scarce resource, the demand for all medical care is perfectly inelastic.