EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 5, Problem 10SP
To determine
Determine the
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EBK PRINCIPLES OF MICROECONOMICS (SECON
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- Taxi passenger subsidy policies are in the pipeline, says MbalulaThe government wants to introduce subsidies for minibus taxi passengers, Transport Minister Fikile Mbalula has said. Speaking at the launch of the R1.1 billion Taxi Relief Fund (TRF) at the National Empowerment Fund (NEF) head office in Sandton yesterday, he said the transport policy was being reviewed and other forms of transport, such as bus transport, had already benefited from subsidies. Professor Jackie Walters, head of the Department of Transport and Supply Chain Management at the University of Johannesburg, said the issue of subsidies for the minibus taxi industry has been debated for some time, but the government had always faced the dilemma of an appropriate distribution system for such a subsidy because the taxi industry was still largely unregulated.He believed the government was probably planning to extend the taxi recapitalisation project in one way or another – this programme essentially involves exchanging…arrow_forwardIdentify at least one positive externality from running a donut shop. Identify at least one negative externality from running a donut shop. Explain how these positive and negative externalities could impact the donut shop’s profits. (Hint: think subsidy for positive externality and tax for negative externality.) Draw two graphs that show the price of donuts before and after the positive and negative externality impacted the price of your donuts.arrow_forwardConsider the attached graph showing the supply and demand for rental apartments around the UH. campus. If the government were to subsidize housing by $1000 per unit per month, then the quantity of rental apartments would____ (increase or decrease) by____ thousand units. The rental price received by landlords inclusive of the subsidy would ____(increase or decrease) by_____ dollars per month while the price paid by tenants, net of the subsidy, would____ (increase or decrease) by____ dollars per montharrow_forward
- Plot the supply and demand functions on a sheet of graph paper. Suppose the government sets a price control for a pound of almonds at $14. On the graph, identify consumer surplus, producer surplus, and the deadweight loss.arrow_forwardAt 10 million hours, what areas make up the total economic surplus in this market?arrow_forwardplease plot a graph showing the effect of a government subsidy on the market for surgical masks.arrow_forward
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