Consider the example presented in Figure 13-3. Imagine that the current price of waste disposal is $0.025/lb
Question:
a. Fitting a linear demand curve to the two observed points, calculate the annual net benefits of raising the price of waste disposal to $0.05/lb.
b. Fitting a constant-elasticity demand curve to the observed points, calculate the annual net benefits of raising the price of waste disposal to $0.05/lb.
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Related Book For
Cost Benefit Analysis Concepts and Practice
ISBN: 978-0137002696
4th edition
Authors: Anthony Boardman, David Greenberg, Aidan Vining, David Weimer
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