The citizens of Ballad used to pave 120 miles of roadways per year. After the government of Ballad began paving 100 miles of roadways per year itself, the citizens cut back their paving to 30 miles per year, for a total number of roadway miles paved per year of only 130 miles. What might be happening here?
Answer to relevant QuestionsBill’s demand for hamburgers (a private good) is Q = 20 – 2P and Ted’s demand is Q = 10 – P. a. Write down an equation for the social marginal benefit of the consumption of hamburgers. b. Now suppose that hamburgers ...To determine the right amount of public good to provide, the government of West Essex decides to survey its residents about how much they value the good. It will then finance the public good provision by taxes on residents. ...Consider an economy with three types of individuals, differing only with respect to their preferences for monuments. Individuals of the first type get a fixed benefit of 100 from the mere existence of monuments, whatever ...The city of Metropolitan added a new subway station in a neighborhood between two existing stations. After the station was built, the average house price increased by$10,000 and the average commute time fell by 15 minutes ...The preference revelation problem associated with Lindahl pricing becomes more severe as the number of people in society increases. Why do you think this is true?
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