Price of a visit Dum Visits per year Assume this graph is providing the travel cost model results from a study on walking trails in a forest. What would you expect to happen to P1 and V1 if the parks initiated a program that eliminated a trash problem that the trails were previously experiencing? P1 and V1 would both decrease. P1 and V1 would both increase. P1 would increase while V1 would decrease. P1 would decrease while V1 would increase.

Price of a visit Dum Visits per year Assume this graph is providing the travel cost model results from a study on walking trails in a forest. What would you expect to happen to P1 and V1 if the parks initiated a program that eliminated a trash problem that the trails were previously experiencing? P1 and V1 would both decrease. P1 and V1 would both increase. P1 would increase while V1 would decrease. P1 would decrease while V1 would increase.

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 31CTQ: Consider two ways of protecting elephants from poachers in African countries. In one approach, the...

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a) If the total benefits to society of achieving some specific level of pollution control aresignificantly greater than the total costs to society of doing so, will it necessarily beeconomically efficient (socially optimal) to do so? Explain your answer with words and agraph.b) In March 2011, the US EPA issued a report that looked at the results of the Clean Air Actfrom 1990 to 2020 (see: http://www.epa.gov/air/sect812/prospective2.html). This reviewfound that in the central estimate of the CAA’s impact, benefits exceeded costs by a ratio of30 to 1. This leads some environmental policy commentators to conclude that the EPA hadnot gone far enough in reducing air pollution. Under what conditions would a benefit costratio of 30:1 imply that it would be economically efficient to further reduce air pollutionunder the CAA? Assuming the EPA’s benefit-cost estimate is correct, is it possible that itcould actually be economically efficient to loosen, rather than strengthen, air…
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