1. Illustrate and explain the simultaneous impact of TRAIN law on the lower income group’s consumption of instant coffee. Compare and contrast the equilibrium price and quantity before and after the implementation of the law.

Microeconomic Theory
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ISBN:9781337517942
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Chapter19: Externalities And Public Goods
Section: Chapter Questions
Problem 19.9P
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1. Illustrate and explain the simultaneous impact of TRAIN law on the lower income group’s consumption of instant coffee. Compare and contrast the equilibrium price and quantity before and after the implementation of the law.

2. Illustrate and explain why there are very little clean Public Comfort Rooms that are free or are donation-based. Provide a possible solution to this problem (15 pts) (hint: analyze public CR as a positive externality)

3. Do you think that the TRAIN law was/is successful as a pro-poor taxation program? Why or why not? 

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