1. If the demand for a service increases and the supply of the service remains constant is...
Question:
1. If the demand for a service increases and the supply of the service remains constant is there any way for the cost of the service to be driven down?
2. 2. If this service / good is needed by an entire populous which in there any way for the total cost of the service / good to be less than when only certain segments of the population needed the service? To restate this simply with an example... Let us say that we enact a law which requires that every home in the United States needs an "emergency kit," for natural disasters or terrorism. When the Congressional Budget Office looks at the law it says that the overall cost of the law is going to represent 5% of the GNP. Voluntarily because of the climate in the world about 60% of the population goes out and buys the kit on their own and 40% does not for one reason or another. Will the overall cost of the "kits" be reduced or remain the same if the government then forces the 40% of the population to purchase the "kit" of face punitive taxes? Remember we are speaking about the total cost, not the cost per individual good.
3. Isn't the only true way to bring down the overall total cost of a good or service as it relates to another economic indicator to not purchase the good or service in the first place or change the indicator which you are measuring it against?
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe