Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 5IAPA
To determine
To compute:
The number of students enrolled, the tuition and the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
$15
$12
$8
28
Select one:
a. $7
b. $3
500 700
C. $4
d. $15
Supply
Social value
Demand
The figure above shows a market for Softella medicated tissues. Assume the only use for the tissues
is to wipe and clean your hands, which prevents the spread of germs to others. If the government
were to subsidize the users of the tissues, what would be the dollar amount of the subsidy?
Quantity of boxes of
so ftella medicated
tissues
What is the calculation for the amount of the question? How they can get $5535000? I'm confuse. Thank you for helping me.
Figure 10-12
Price
External
benefit
Supply
Line 2
Line 1
21 2₂
Quantity
Refer to Figure 10-12. Which of the following is an appropriate label for Line 2?
a. private cost
b. private value
c. social value
d. social cost
Chapter 10 Solutions
Foundations of Economics (8th Edition)
Ch. 10 - Prob. 1SPPACh. 10 - Prob. 2SPPACh. 10 - Prob. 3SPPACh. 10 - Prob. 4SPPACh. 10 - Prob. 5SPPACh. 10 - Prob. 6SPPACh. 10 - Prob. 7SPPACh. 10 - Prob. 8SPPACh. 10 - Prob. 9SPPACh. 10 - Prob. 10SPPA
Ch. 10 - Prob. 1IAPACh. 10 - Prob. 2IAPACh. 10 - Prob. 3IAPACh. 10 - Use the following information to work Problems 3...Ch. 10 - Prob. 5IAPACh. 10 - Prob. 6IAPACh. 10 - Prob. 7IAPACh. 10 - Prob. 8IAPACh. 10 - Prob. 9IAPACh. 10 - Prob. 1MCQCh. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 6MCQ
Knowledge Booster
Similar questions
- Some economists claim that early child care generates an external benefit to society. a. What is the market equilibrium? What is the socially optimal outcome? How do they differ? b. The government is planning to provide a per-unit subsidy for child care to achieve the socially optimal outcome. How large should this subsidy be? c. How much is the total government subsidy each month to reach a socially optimal outcome?arrow_forwardAnswer the attached questionarrow_forward1. When a production externality has a beneficial effect on a bystander at the market equilibrium a. the market will be efficient b. the social cost of production is less than the private cost c. society is unlikely to benefit from production subsidies d. the private benefit from consumption is less than the social cost of production 2. In the short term, we would expect home construction to have a: a. High elasticity of demand b. Low elasticity of demand c. Low elasticity of supply d. High elasticity of supply 3. Which of the following would be associated with monetary policy operations in response to an economic downturn: a. A shift of the money demand curve to the right. b. A shift of the money supply curve to the right. c. A shift of the money demand curve to the left. d. A shift of the money supply curve to the left. 4. If the government cuts government spending, then over time the government budget deficit: a. will definitely rise b. will definitely fall c. may fall, or…arrow_forward
- A situation in which the Marginal Social Cost is greater than the Marginal Private Cost is a. Positive Consumption Externality ○ b. Positive Production Externality c. Negative Production Externality ○ d. Negative Consumption Externality Clear my choicearrow_forward1. Explain positive and negative externalities with the help of examples? 2. explain the difference between public, common resource and club goods with the help of characteristics also mention the examples in your answer? 3. explain the different measures taken by the government to deal with the poverty in United States?arrow_forwardParagraph Styles ILOS: A2, C2 Editing Voice 4. The paper industry has the demand and supply curves shown below: Price of paper Quantity demanded Quantity supplied 80 40 70 50 4 60 60 50 70 a. Suppose that this industry results in extreme externalities. What can be said about its optimal output? b. Draw the supply and demand curves for paper. Does the supply curve reflect the true social costs of producing the product? If not will a supply curve reflecting the true social costs lies above or below the supply curve you have drawn? c. What is the equilibrium price of paper? From the point of view of reflecting the true social costs, is this price the correct one, or too low or too high?arrow_forward
- This graph represents the tobacco industry. IPrice 16 14 Social Cost 12 10 Private Cost 8 6 4 Demand 200 500 650 Quantity a) Without any government intervention, what is the market determined price and quantity? b) What is the price of the externality? c) What is the socially optimal price and quantity? d) What should the government do (impose a tax or provide a subsidy) to internalize this externality? What is the amount of the the corrective tax/subsidy needed to be to move the outcome from the market equilibrium to the socially-optimal outcome?arrow_forwardHelparrow_forwardMINDTAP Aplia Homework: Externalities and the Environment 2. Market solutions to correct for negative externalities This problem asks you to examine the costs in the market for gasoline. The cost of consuming gasoline comes in two parts: 1. First, the driver pays the market price for a gallon of gasoline 2. In addition, other people who live in the area bear a cost because they suffer from the pollution created by consuming gasoline; this is the external cost of consuming gasoline. Because external costs result from the consumption of gasoline, the marginal social cost of gasoline exceeds the marginal private cost. The following graph shows the demand for gasoline, the marginal private cost of a gallon of gasoline, and the marginal social cost of producing and consuming gasoline. 7 Demand Ssocial ch End PgUp F11 DII PrtScn Home F2 F3 F4 F5 F6 F7 F8 F9 F10 23 24 & ) 8. 9- R T Y U D F G H J K L く 3. ollars per gallon)arrow_forward
- Some economists claim that early child care generates an external benefit to society. Use the below graph to answer the following questions. Price ($ per month) Supply 1,300 1,200 1,000 900 Marginal Social Benefit 1. Marginal Private Benefit 23 26 Quantity (millions per month) What is the market equilibrium? What is the socially optimal outcome? How do they differ? a. b. The government is planning to provide a per-unit subsidy for child care to achieve the socially optimal outcome. How large should this subsidy be? с. How much is the total government subsidy each month to reach a socially optimal outcome?arrow_forwardThe graph shows the demand for university education. The marginal cost of educating a student is a constant $5,000 a year and education creates an external benefit of a constant $2,000 per student per year. If all universities are public, calculate the tuition that will achieve the efficient number of students. How much will taxpayers have to pay? COC Draw the marginal social cost curve. Label it MSC. Draw the marginal social benefit curve. Label it MSB. Draw a line that shows the tuition that schools charge to achieve the efficient number of students. Label it Tuition. The tuition that universities charge is $thousand per student. The amount paid by taxpayers is $thousand per student 1804 704 60 504 404 30 20 10 Price and cost (thousands of dollars per student per ye 00 DEMB 79 20 880 10 20 30 40 50 60 Students (thousands per year) >>> Draw only the objects specified in the questionarrow_forwardWhat quantity will the private market produce in this situation? Price a b C Quantity A A (0) Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Quantity B Quantity C BCD Quantity D Supply Marginal social benefit Demand Quantityarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning