5. An article in the Financial Times noted that toll road that connects two counties in Massachusettswas not generating as much toll revenue as predicted. At that time, the toll rate was $8 for apassenger car making a round trip from end to end on the tollway during rush hour. What typeof additional information would you need to know in order to determine if the toll should beincreased or decreased to maximize revenue?

Price elasticity of demand refers to the responsiveness of the quantity demanded to a change in the…

Answered: An article in the Financial Times noted…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 8PA

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. Each answer should consist of one paragraph that contain analysis (not opinion). 1 Consider a highway with a hot lane and a lane that has no toll. Assuming that the toll must be paid by all cars that use the hot lane, no matter how many people are riding in them. What can you predict about the average occupancy of vehicles in the hot lane compared to vehicles in the other lane during rush hour? 2. Explain how making something illegal (like sex, booze or drugs) impacts the quality, quantity and price of the illegal substance. In addition, are there any unintended consequences of making drugs illegal that can cause harm to people? 3 Anti-fracking “Baptists” include those concerned with any further environmental degradation from extracting non-renewable resources from the earth. Identify the “bootleggers” who would support the Baptists, albeit not so publicly, but still forcefully. Why would these…
Many transportation systems, such as theWashington, D.C., Metro (subway), charge higherfares during rush hours than during the rest of theday. Why might they do this?
Think back to a purchase that you made recently. How would you describe your thinking before you made that purchase?
Table 4.6 shows the amount of savings and barrowing in a market for loans lo purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate and quantity in the capital financial market? How can you tell? Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be 10 million less supplied at every interest rate. Calculate the new equilibrium interest rate and quantity, and explain why the direction of the interest tale shift makes intuitive sense.
A tax policy analyst proposes that we should eliminate exemptions from taxes on food andmedicine (i.e., we should start taxing these goods) because taxes on these goods would be anefficient way to raise revenue.a. What do you think the analyst means when she says that taxing these items would bean efficient way to raise revenue? b. Is the analyst correct that taxing food and medicine would be an efficient way to raiserevenue? Draw a diagram to help explain. Hint: Think about the demand curve for thesegoods.c. Why might there be little political support for such a policy
Kip is trying to decide whether to take a one-day martial arts class at Rex Kwan Do. The fee for the class is $400. Kip will also have to pay his brother Napoleon $150 for that day in return for giving him a ride into town. Instead of taking the class, Kip could spend all day on the computer chatting with his girl, LaFawnduh. This gives him a value of $300. On the other hand, he could spend all day working with his Uncle Rico and making sweet moolah. Uncle Rico has promised to pay him $350 on that day if he works with him. What is Kip’s marginal cost of joining Rex Kwan Do? Correct answer: $900 why don't you include 300 also? explanation
Kip is trying to decide whether to take a one-day martial arts class at Rex Kwan Do. The fee for the class is $400. Kip will also have to pay his brother Napoleon $150 for that day in return for giving him a ride into town. Instead of taking the class Kip could spend all day on the computer chatting with his girl, LaFawnduh. This gives him a value of $300. On the other hand, he could spend all day working with his Uncle Rico and making sweet moolah. Uncle Rico has promised to pay him $350 on that day if he works with him. What is Kip’s marginal cost of joining Rex Kwan Do? Group of answer choices $650 $550 $400 $300 $350 $150 $900
Briefly mention what is the social discount rate?
Sinead commutes from her suburban residence to the city center. When asked her opinion of a proposed congestion tax of $5 per trip, she says, “Of course I oppose the congestion tax. It would make me worse off by $5 per trip. What do you think I am, stupid?” Critically appraise Sinead’s statement.
For a long time, lending money to finance the purchase of taxi medallions was a very good business---almost as good as printing money some said. Over two decades from 1990-2013, the value of a New York City taxi medallion rose 720%, making it a better investment than stocks, oil or gold. Today, the price of those medallions has sharply decreased with the introduction of Uber and Lyft. The New York medallion system limits the number of taxis, but each taxi driver can offer as many rides as he or she can manage. (Now you know why New York taxi drivers are so aggressive!). To simplify our analysis, however, we will assume that a medallion system limits the number of taxi rides that can legally be given to 10 million per year. With the Fare (per ride) on the vertical axis and quantity of rides on the horizontal axis, the following information has been provided: Fare Quantity Demanded Quantity Supplied $7.00 6…
Suppose that in response to learning that some sick individuals were denied health insurance, the government mandates that insurance companies offer insurance to everyone at unregulated rates. (a) Would this help reduce the number of uninsured? Explain. (b) An alternative strategy for reducing the number of uninsured might be to mandate that insurance companies charge individuals with health problems no more than individuals without health problems. Would this help reduce the number of uninsured? Explain.
3 new driving laws planned for South Africa: MinisterTransport minister Fikile Mbalula says that his department is working on a number of regulatory changes to improve the safety of South Africa’s roads. In a media briefing on Tuesday (18 January 2022), Mbalula said this includes amendments to the National Road Traffic Act to reduce the permissible alcohol limit for motorists, which is currently being considered by parliament.Mbalula has indicated that this could include a zero-tolerance policy on drunk driving. Under current regulations, the legal blood alcohol content (BAC) limit for drivers from 0.05 grams per 100 millilitres to 0.00g/100ml, and the breath alcohol concentration from 0.24g/1,000ml also to zero.The transport minister said that his department also working on changes for truck drivers in South Africa – including further regulations around foreign drivers.“The plight of the trucking industry remains on our radar as it plays an important role in contributing to the…

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