Electric vehicles (EVs) are an important part of meeting global goals onclimate change. EVs have emissions up to 43% lower than dieselvehicles. However, In Australia, electric vehicles account for only 0.6%of all new sales in 2020. Suppose the market for EVs is perfectlycompetitive. The market demand for EVs is given by: p 20- 2Q andthe market supply for EVs is given by: p = 3Q. The marginal socialbenefit of adopting EVs is given by: p 20 - Q. To encourage thepurchase of EVs, the NSW government decides to subsidise theconsumers. The optimal level of subsidy isreach a socially optimal equilibrium.for the market to Fisher library was open to the University of Sydney staff and studentsand community borrowers during pre-COVID times. Consider themarket for library resources at that time. The demand for the staff isgiven by p 10 - q ; the demand for the students is given byp - 10 -2q; and the demand for the community borrowers is given by p 5-q.%!The library resources areand the aggregate market demandisO private goods; q = 20 - 2.5p when Osp<5 and q = 30 - 1.5p when 5sps10O private goods; p = 25 - 4q when Osq<5 and p 10 - q when 5sqs10O public goods; q 20 - 2.5p when Osp<5 and q 30 - 1.5p when 5sps10%3!%3!O public goods; p = 25 - 4q when Osq<5 and p - 10 - q when 5sqs10O None of the other answers is correcas

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Electric vehicles (EVs) are an important part of meeting global goals on climate change. EVs have emissions up to 43% lower than diesel vehicles. However, In Australia, electric vehicles account for only 0.6% of all new sales in 2020. Suppose the market for EVs is perfectly competitive. The market demand for EVs is given by: p 20 - 2Q and the market supply for EVs is given by: p 3Q. The marginal social benefit of adopting EVs is given by: p 20 - Q. To encourage the purchase of EVs, the NSW government decides to subsidise the consumers. The optimal level of subsidy is reach a socially optimal equilibrium. %3D for the market to

Electric vehicles (EVs) are an important part of meeting global goals on climate change. EVs have emissions up to 43% lower than diesel vehicles. However, In Australia, electric vehicles account for only 0.6% of all new sales in 2020. Suppose the market for EVs is perfectly competitive. The market demand for EVs is given by: p 20 - 2Q and the market supply for EVs is given by: p 3Q. The marginal social benefit of adopting EVs is given by: p 20 - Q. To encourage the purchase of EVs, the NSW government decides to subsidise the consumers. The optimal level of subsidy is reach a socially optimal equilibrium. %3D for the market to

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Mike, Rosie, and Shobber live in separate houses along a dark and windy road. The following represent their marginal benefits for street lights: MBMike=200-2QM MBRosie=100-QR MBShobber=100-2QS where QM represents the quantity of street lights consumed by Mike, QR is the quantity of street lights consumed by Rosie and QS is the quantity of street lights consumed by Shobber. The Mayor of their town considers street lights to be a public good and is charged with purchasing the optimal number of street lights from Boone’s Light Shop. Boone’s is willing to sell street lights for $150 per light. b. What quantity of street lights should the Mayor purchase? Why? Suppose the Mayor is able to implement a pricing scheme to charge users for the illumination services. c. How much should each individual be charged? Does the tax revenue cover the total cost of providing the optimal number of streetlights?
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Suppose a new social service is introduced by a government at a fixed cost of $3,000 (note: there is no marginal cost to provide this service). This service has not been provided before and there is no available substitute for this service. Economists have estimated the marginal benefit of the new service is given by: MB = 100 – Q where Q is the quantity (in hours) of the service that is used. Please note the MB gives both the marginal private benefit (MPB) and marginal social benefit (MSB) (i.e., MB = MPB = MSB). The government imposes a price to ration use of the service to recover part of its costs. What price should be introduced to ration the use of the service to 50 hours? What is the net social benefit when the service charge is used? How does charging a price compare to providing it for free and/or rationing? Be Hint(s): similarly, think about measuring the area of consumer surplus and compare it to the governments cost. You may want to complete Q5 as you complete this…
Suppose 20 people each have the demand Q = 20 - Pfor streetlights, and 5 people have the demand Q = 18 - 2P for streetlights. The cost of building each streetlight is $10. If it is impossible to purchase a fractional number of streetlights, how many streetlights are socially optimal?
1. During the winter break, Sam decides to go for a skiing vacation in Aspen instead of taking piano lessons. The opportunity cost of the skiing vacation is the:cost of accommodation and food in Aspen.value of piano lessons.cost of buying a piano.amount paid to the skiing instructor. 2. Which of the following is an example of a negative externality?Smith reducing the consumption of imported wine following an increase in the price of imported winePhoebe refusing to contribute to the building of a children’s park in her neighborhoodChristina accepting a payment in cash rather than in check for her laundry servicesTom playing music loudly in his room, disturbing his roommate who has an exam the next day3. A perfectly competitive firm sells 10 units of Good X at a price of $2 per unit. It incurs a fixed cost of $5 and a variable cost of $40 to produce the good. Which of the following is true?The firm should operate in the short run but shut down in the long run.The marginal cost…
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clean water is a public benefit since it is impossible to exclude anyone from drinking it, and drinking water by one person does not affect the amount of water available for others to consume. In this situation, market failure occurs because the private market cannot deliver clean water efficiently. This is because private enterprises would be unable to charge for clean water. After all, everyone could drink it even if they did not pay for it. As a result, private enterprises would have little need to invest in supplying safe drinking water. By monopolizing the clean water market, the government can efficiently provide it. The government can charge for clean water as a monopolist, utilizing the revenue to offset costs. Suggest a relevant government policy that would yield efficient outcome. using 30 words carefully explain the process through which the implementation of the government policy will yield to optimal outcome.
Whenever we think of a resource, say forest, the value that immediately comes to our mind is the utility that we drive directly from the resource, such as timber. However as environmental scientist, we know that a forest has other values other than direct use value of economic value of a resource. Provide suggestions to address market failure in the above situation.
Suppose that it costs $300 per day to search for chanterelle mushrooms at Pt. Reyes National Seashore. On an average day, the total weight of mushrooms M found at Pt Reyes is M=100x-x2 pounds where x is the number of people mushroom hunting on that day. Chanterelles can be sold for $80 per pound. How many more people will go mushroom hunting than is socially optimal?
Consider an economy with three people and two goods: private good (x) and public good (y). Suppose that marginal rate of transformation is 1. (one unit of private good is needed for the production of one unit of public good). The utility functions of the individuals are given below: U₁ = 2y¹/2 + x₁ U₂ = 4y¹/2 + x2 U₂ = 6y¹/2 + x3 What is the optimal level of public good?
The private market demand curve for flu shots is P = 100 - 4Q, and the supply curve for flu shots is P = 22 + Q where Q is a million shots per year and P is the dollars per shot. Assume that the flu shots generate an additional benefit in that it reduces the likelihood of others getting sick. This benefit is reflected in a social demand curve P 112-4Q. The private market equilibrium quantity of shots produced is optimal amount of shots is, but the socially Around 9 to 10 million shots.... Around 10 to 11 million shots Around 7 to 8 million shots.. Around 18 to 20 million shots Around 18 million shots ... Around 15 to 16 million shots Around 15 to 16 million shots ... Around 18 million shots
Three neighboring towns – Marshland, Dampland, and Wetland – all border the same lake. The lake frequently floods causing damage to property in all three towns. Each town would benefit from flood mitigation, but the level of benefits differs. With Z representing the level of mitigation: for Marshland, MB = 3 – Z for Dampland, MB = 4 – 2Z for Wetland, MB = 11- Z The marginal cost of flood mitigation is MC = 2 + 12Z Questions: ***Please Note*** Previous Expert Calculated: Z = 16/3 as the Solution to (a) Math Solver Calculates: Z = 1 ***Please Resolve*** (a) What is the socially optimal level of Z? (b) What would each individual town be willing to pay for this level of flood mitigation? (c) The representative from Wetland proposes that each town pay an equal share for the optimal level of flood mitigation. Would…