2. cohen contracts to sell his house and lot to windsor for $100,000.00. the terms of the contract call for windsor to pay 10 percent of the purchase price as a deposit toward the purchase price, or a down payment. the terms further stipulate that if the buyer breaches the contract, cohen will retain the deposit as liquidated damages. winsor pays the deposit, but because her expected financing of $90,000.00 balance falls through, she breaches the contract. two weeks later cohen sells the house and lot to ballard for $105,000.00. winsor demands her $10,000.00 back, but cohen refuses, claiming that winsor’s breach and the contract terms entitle him to keep the deposit. discuss who is correct.

4. understanding different policy options to correct for negative externalities carbon dioxide emissions have been linked to global warming. the following table lists some possible public policies aimed at reducing the amount of carbon dioxide in the air. for each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. public policy command-and-control policy tradable permit system corrective subsidy corrective tax the government charges factories $110 for every ton of carbon dioxide they emit. the government orders every factory to adopt a new technology, which reduces carbon-dioxide emissions into the atmosphere. trees take carbon dioxide out of the air and convert it to oxygen, so the government funds a tree-planting initiative by offering $110 to any citizen who plants a tree. the government limits total carbon-dioxide emissions by all factories to 180,000 tons per month. each individual factory is given the right to emit 140 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace.