3. Briefly answer each of the following. a) Explain precisely why secondary market impacts should be ignored when prices in the secondary market do not change. b) Why don't large positive multiplier effects on local spending from events such as the Superbowl, or any sizeable local project or event, indicate the project's benefits exceed its costs, even locally? Hint: one important part of the answer has to do with secondary market effects, and you may want to reference question #2.

3. Briefly answer each of the following. a) Explain precisely why secondary market impacts should be ignored when prices in the secondary market do not change. b) Why don't large positive multiplier effects on local spending from events such as the Superbowl, or any sizeable local project or event, indicate the project's benefits exceed its costs, even locally? Hint: one important part of the answer has to do with secondary market effects, and you may want to reference question #2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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