MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 8.W, Problem 4IP
(a)
To determine
The effect of setting a fee for ranchers who use public land.
(b)
To determine
The advantages of setting low fee.
(c)
To determine
Change in demand for government grazing land.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these 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?
How market equilibrium is found with Pollution Abatement Subsidy? Also draw graph and interpret it.
price
100
90
MPC-MSC
80
70
30,67.5
60
40,60)
50
30,45)
40
40,37.5)
MSB
30
20
10
MPB
10 20 30 40 50 60 70 80 90 100
quantity of trees (thousands)
Trees planted in urban areas improve air quality, reduce soil erosion, and moderate
temperatures in hot cities. The figure depicts the market for trees planted in Tempe, Arizona.
What is the value of the deadweight loss if the market is unregulated?
To review this concept, see the section Positive Externalities.
100
50
225
112.5
Chapter 8 Solutions
MICROECONOMICS
Ch. 8.1 - Prob. 1QCh. 8.1 - Prob. 2QCh. 8.1 - Prob. 3QCh. 8.1 - Prob. 4QCh. 8.1 - Prob. 5QCh. 8.1 - Prob. 6QCh. 8.1 - Prob. 7QCh. 8.1 - Prob. 8QCh. 8.1 - Prob. 9QCh. 8.1 - Prob. 10Q
Ch. 8.W - Prob. 1QECh. 8.W - Prob. 2QECh. 8.W - Prob. 3QECh. 8.W - Prob. 4QECh. 8.W - Prob. 5QECh. 8.W - Prob. 6QECh. 8.W - Prob. 7QECh. 8.W - Prob. 8QECh. 8.W - Prob. 9QECh. 8.W - Prob. 10QECh. 8.W - Prob. 11QECh. 8.W - Prob. 12QECh. 8.W - Prob. 13QECh. 8.W - Prob. 14QECh. 8.W - Prob. 1QAPCh. 8.W - Prob. 2QAPCh. 8.W - Prob. 3QAPCh. 8.W - Prob. 4QAPCh. 8.W - Prob. 5QAPCh. 8.W - Prob. 1IPCh. 8.W - Prob. 2IPCh. 8.W - Prob. 3IPCh. 8.W - Prob. 4IPCh. 8.W - Prob. 5IPCh. 8.W1 - Prob. 1QCh. 8.W1 - Prob. 2QCh. 8.W1 - Prob. 3QCh. 8.W1 - Prob. 4QCh. 8.W1 - Prob. 5QCh. 8.W1 - Prob. 6QCh. 8.W1 - Prob. 7QCh. 8.W1 - Prob. 8QCh. 8.W1 - Prob. 9QCh. 8.W1 - Prob. 10QCh. 8 - Prob. 1QECh. 8 - Prob. 2QECh. 8 - How would an economist likely respond to the...Ch. 8 - Prob. 4QECh. 8 - Prob. 5QECh. 8 - Prob. 6QECh. 8 - Prob. 7QECh. 8 - Prob. 8QECh. 8 - Prob. 9QECh. 8 - Prob. 10QECh. 8 - Prob. 11QECh. 8 - Prob. 12QECh. 8 - Prob. 13QECh. 8 - Prob. 14QECh. 8 - Prob. 15QECh. 8 - Prob. 16QECh. 8 - Prob. 17QECh. 8 - Prob. 18QECh. 8 - Prob. 19QECh. 8 - Prob. 20QECh. 8 - Prob. 21QECh. 8 - Prob. 22QECh. 8 - Prob. 23QECh. 8 - Prob. 24QECh. 8 - Prob. 1QAPCh. 8 - Prob. 2QAPCh. 8 - Prob. 3QAPCh. 8 - Prob. 4QAPCh. 8 - Prob. 5QAPCh. 8 - Prob. 1IPCh. 8 - Prob. 2IPCh. 8 - Prob. 3IPCh. 8 - Prob. 4IPCh. 8 - Prob. 5IPCh. 8 - Prob. 6IPCh. 8 - Prob. 7IPCh. 8 - Prob. 8IPCh. 8 - Prob. 9IPCh. 8 - Prob. 10IP
Knowledge Booster
Similar questions
- Price (P) $4.00 $2.50 $0.50 200 Quantity (Q) The market shown in the figure above is in equilibrium at the socially optimal quantity of 200 units. The Demand curve captures all social benefits to consumers, and the Supply curve captures all social costs to producers. In this case, Producer Surplus will be: Select one: a. $100 b. $200 C. $150 d. $300arrow_forwardWhat happens in the market for a good that pollutes the air when it is manufactured if government decides to tax consumers when the product is purchased? Will this reduce the amount of air pollution?arrow_forwardIf all consumers became vegetarians, what impacts would this have on the meat industry and animal population?arrow_forward
- Show graphically and explain how an increase in environmental awareness affects the market for bottled water.arrow_forwardRefer to the Figure. This graph represents the market for cigarettes. This market Price 34 32 30 28 26 24 Social Cost 22 20 Private Cost 18 16 14 12 10 8 4 2 Demand 200 500 600 Quantity has no externalities. would benefit from a tax. would benefit from a subsidy. has no need for government intervention.arrow_forwardWhat causes market failure when there is marine pollution.arrow_forward
- Price (P) S $4.00 $2.50 D $0.50 200 Quantity (Q) The market shown in the figure above is in equilibrium at the socially optimal quantity of 200 units. The Demand curve captures all social benefits to consumers, and the Supply curve captures all social costs to producers. In this case, Consumer Surplus will be: Select one: a. $100 b. $300 C. $200 d. $150arrow_forwardFair use is defined in Section 107 of U.S. copyright law. It includes four factors designed to determine whether a use is fair. Look up Section 107 of the U.S. CopyrightLaw. In your own words, what are those four factors?arrow_forwardConsider the supply of soybeans in South America and the demand for soybeans in China. Draw a graph in which you show the current market equilibrium price of soybeans and quantity of soybeans traded. Include the curve that shows the true social costs of soybean production. Show the socially optimal amount of soybeans traded. Show the price that should really be charged for soybeans to ensure that production moves to the socially optimal level. Ensure that you label your graph correctly (all curves, axes, prices and quantities labeled). Show the deadweight loss of soybean production. What intervention could be used to change the market price for soybeans to the level that would move the quantity of soybeans traded to the optimal level? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Use the graph attached below as a starting point (either download it or print it out). Add curves, labels, etc. to this graph in order to show the following: 1. Show that this good has a $4/unit negative externality (external cost), such as pollution. 2. Shade the area that represents the Deadweight Loss (lost gains from trade) caused by the external cost. 3. Show a tax or subsidy wedge (whichever you think is appropriate) that will solve the problem of the external cost. 4. Show the socially optimal level of production that the Pigouvian tax or subsidy above will help the market to achieve. You may use software or pencil and paper to complete this graph. Upload it here when you are done.arrow_forwardI would like theses answers checkedarrow_forwardHow would you distinguish between consumerism and environmentalism in terms of scope and influence?arrow_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
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co