Michael Scarn purchased a Personal Auto Policy (PAP) that included collision coverage. Michael lost control of his vehicle while driving home from a disappointing visit to a local beet farm. Excess beet juice on his tires caused him to skid across the median and into oncoming traffic. Another vehicle hit his car, causing severe damage to both. Ignoring any deductible, which of the following is true about the insurer's financial obligation for damage to Michael's car? I. It will pay an amount equal to the greater of ACV or what is necessary to repair or replace Michael's car.
II. The amount paid depends on whether he is determined to be at fault.

a. I only
b. II only
c. I & II
d. neither I nor II

7. problems and applications q7 congress and the president decide that the united states should reduce air pollution by reducing its use of gasoline. they impose a $0.50 tax on each gallon of gasoline sold. suppose they decided to impose the tax on consumers. in the following graph, shows the effect of a $0.50 tax on each gallon of gasoline sold imposed on consumers by shifting the demand or supply curve. demand supply 0 1 2 3 4 5 6 3.0 2.5 2.0 1.5 1.0 0.5 0 price of gasoline (dollars per gallon) quantity of gasoline (thousands of gallons) demand s 1 s 2 true or false: the price producers receive will be higher if the tax were imposed on consumers. true false if the demand for gasoline were more elastic, this tax would be effective in reducing the quantity of gasoline consumed. true or false: consumers of gasoline are by this tax. true false workers in the oil industry are by this tax.