Income quintile 6 1. New homes built on floodplains 7 Baseline New home purchases on floodplains by income quintile, 8 number pa Average price of new homes purchased on floodplains, 9 £ 10 Option X Increased cost of making new homes flood resistant 11 and/or resilient, £/home Average price of new homes including flood resilience 12 and/or resistance measures, £ 13 Average percentage increase in price, % 14 Price elasticity of demand (PED) Change in number of new homes bought on floodplains, 15 number pa 16 Remaining new homes built on floodplains, number pa Bottom Second Middle Fourth Тop Total 8000 7200 4500 2300 3000 25000 120000 180000 232000 315000 820000 259380 10000 10000 10000 10000 10000 10000 130000 190000 242000 325000 830000 269380 8.3% 5.6% 4.3% 3.2% 1.2% 3.9% -0.95 -0.75 -0.25 -0.15 0.00 8000 7200 4500 2300 3000 25000

Income quintile 6 1. New homes built on floodplains 7 Baseline New home purchases on floodplains by income quintile, 8 number pa Average price of new homes purchased on floodplains, 9 £ 10 Option X Increased cost of making new homes flood resistant 11 and/or resilient, £/home Average price of new homes including flood resilience 12 and/or resistance measures, £ 13 Average percentage increase in price, % 14 Price elasticity of demand (PED) Change in number of new homes bought on floodplains, 15 number pa 16 Remaining new homes built on floodplains, number pa Bottom Second Middle Fourth Тop Total 8000 7200 4500 2300 3000 25000 120000 180000 232000 315000 820000 259380 10000 10000 10000 10000 10000 10000 130000 190000 242000 325000 830000 269380 8.3% 5.6% 4.3% 3.2% 1.2% 3.9% -0.95 -0.75 -0.25 -0.15 0.00 8000 7200 4500 2300 3000 25000

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 10SCQ: Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table 12.8 shows the...

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