Research more on the topic and tell me what you would do to solve this problem - approach it from both the demand and supply side. What kind of incentives would help with the problem?
Please see question bellow and 1st answer. Please help with the 2nd part of the question.
What kind of incentives would help with the problem?
The black rhino is one of the most endangered species on the planet. In southern Africa in 1970 there were 65,000 Black Rhinos. Now there are only 2,500. Basic economics tells us why they are in trouble and what we can try to do about it.
Why do people kill the black rhino?
Because they can make a lot of money relative to the risk of getting caught - just like drug trafficking and lying on your taxes. In Asian communities the horn is viewed as an aphrodisiac and a powerful pain reliever. In Yemen sabers are made from them. As a result one horn can fetch $30K on the black market. The average yearly income in southern Africa is $1,000 and falling. The black rhino is worth more dead than alive. This is a market that does not correct itself.
Another piece of this, that is common to many environmental challenges, is that most black rhinos are communal property, not private property. Imagine if all the black rhinos were in the hands of one rancher – would he let his herd fall from 65K to 2,500? No he would maximize the value of his scarce resource.
Communal resources problems:
- The community derives no benefit from having the rhinos around.
- Millions of people not in southern Africa derive a utility from conserving the black rhino so it is easier to let someone else do the work of conservation. How much time and energy can any one of us put into conserving rare animals?
- Tour providers who make a lot of money showing wealthy people wild animals have a stake and spend a lot of money on conservation efforts, but that gives some of them a free-rider disadvantage. They are saving a communal resource and other companies that may not invest in conservation will be able to undercut their
price – thus getting a free ride from their conservation efforts.
Is there a role for government here? Unfortunately, this government is low on resources and often very corrupt. The one party that has the most incentive is the poacher who hunts them down, kills them, and takes the horn.
Please answer the following questions:
- Research more on the topic and tell me what you would do to solve this problem - approach it from both the demand and supply side. What kind of incentives would help with the problem?
Step 1
Note:- “Since you have asked multiple question, we will solve the first question for you. If you want any specific question to be solved then please specify the question number or post only that question.
Introduction,
The dark rhinoceros, sometimes known as the hook-lipped rhinoceros, is a rhinoceros species native to eastern and southern Africa, including Angola, Botswana, Kenya, Malawi, Mozambique, Namibia, South Africa, Eswatini, Tanzania, Zambia, and Zimbabwe (Dicers bicornes). The rhinoceros is black in color, however its colors range from brown to grey.
The white rhinoceros is the other African rhinoceros (Cleroterium simoom). The adjective "white" in the name "white rhinoceros" is said to be a misreading of the Afrikaans word wide (Dutch wide), which means wide, and refers to the rhinoceros' square upper lip, as opposed to the black rhinoceros' pointed or hooked lip. These rhinoceroses are now known as square-lipped (for white) or hook-lipped (for black) rhinoceros.
Step 2
- approach it from both the demand:-People will be incentivized to protect rhinos so that they can use and trade their horns in greater numbers. This will increase supply, which will lead to a decrease in price, and people will lessen demand because the horn will no longer be regarded sacrosanct.
The community would be given an incentive to conserve rhinos so that they are not priced out of the market and may profit.
When rhinos are considered private property, tour operators are given private access so that there are no free riders. As a result, there will be an increase in rhinos and rhino conservation.
Step 3
- Because the species has already become endangered, there is a scarcity of supply in this market. The horn is in higher demand because it can be used for a variety of purposes.
As a result of the law of supply, as the price rises, so does the supply, which is why, as the price rises as the species becomes more endangered, there is more supply and a greater number of poachers prepared to murder the animal.
While the
- When the price varies, the amount requested changes as well. When the quantity demanded varies far more than the price, the good is said to be more elastic. When the quantity desired fluctuates less than the price, the product is said to be less elastic.
The study of how goods and services are produced, distributed, and consumed is known as economics. Macroeconomics, which analyses the behavior of the economy as a whole, and microeconomics, which studies the behavior of individual people and organizations, are the two main branches of economics.
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