Suppose the government assigns property rights to the airlines; that is, airlines have the right to use the airspace and the residents have no right to quiet. If the airlines and the residents engage in negotiations to achieve the socially optimal outcome, which of the following are true? (Select all that apply.) a. Quantity of air travel decreases by 20 units b. Quantity of air travel will be 120 units c. The quantity of air travel is unchanged d. None of the other options are correct e. Price of air travel increases by $60 f. The residents are made better off g. Residents will compensate the airlines to decrease flights h. The airlines will compensate the residents to increase flights i. The airlines are made worse off

Suppose the government assigns property rights to the airlines; that is, airlines have the right to use the airspace and the residents have no right to quiet. If the airlines and the residents engage in negotiations to achieve the socially optimal outcome, which of the following are true? (Select all that apply.) a. Quantity of air travel decreases by 20 units b. Quantity of air travel will be 120 units c. The quantity of air travel is unchanged d. None of the other options are correct e. Price of air travel increases by $60 f. The residents are made better off g. Residents will compensate the airlines to decrease flights h. The airlines will compensate the residents to increase flights i. The airlines are made worse off

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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