6,7 Question 6Emma S. and Madelyn G. charge people to park on their lawn while attending a nearby craft fair.At the current price of $10, seven people park on their lawn. If they raise the price to $15, theyknow that only five people will want to park on their lawn. Whether they have seven or five carsparked on their lawn does not affect their costs. From this information it follows thatEmma S. and Madelyn G. would do better charging $15 than $10.O it does not matter if Emma S. and Madelyn G. charge $10 or $15.Emma S. and Madeiyn G. should leave the price at $10.O Emma S. and Madelyn G. should raise the price even more.Question 7Lexi H. buys and sells real estate. Two weeks ago, she paid $300,000 for a house on Pine Street,intending to spend $50,000 on repairs and then sell the house for $400,000. Last week, the citygovernment announced a plan to build a new landfill on Pine Street just down the street fromthe house Lexi H. purchased. As a result of the city's announced plan, she is weighing twoalternatives: go ahead with the $50,000 in repairs and then sell the house for $290,000, orforgo the repairs and sell the house as it is for $250,000. Lexi H. shouldO keep the house and live in it.O forgo the repairs and sell the house as it is for $250,000.O go ahead with the $50,000 in repairs and sell the house for $290,000.O move the house from Pine Street to a more desirable location, regardless of the cost of doing so.

Question 6 Emma S. and Madelyn G. charge people to park on their lawn while attending a nearby craft fair. At the current price of $10, seven people park on their lawn. If they raise the price to $15, they know that only five people will want to park on their lawn. Whether they have seven or five cars parked on their lawn does not affect their costs. From this information it follows that O Emma S. and Madelyn G. would do better charging $15 than $10. O it does not matter if Emma S. and Madelyn G. charge $10 or $15. O Emma S. and Maderyn G. should leave the price at $10. O Emma S. and Madelyn G. should raise the price even more. Question 7

Question 6 Emma S. and Madelyn G. charge people to park on their lawn while attending a nearby craft fair. At the current price of $10, seven people park on their lawn. If they raise the price to $15, they know that only five people will want to park on their lawn. Whether they have seven or five cars parked on their lawn does not affect their costs. From this information it follows that O Emma S. and Madelyn G. would do better charging $15 than $10. O it does not matter if Emma S. and Madelyn G. charge $10 or $15. O Emma S. and Maderyn G. should leave the price at $10. O Emma S. and Madelyn G. should raise the price even more. Question 7

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...

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