EBK MICROECONOMICS
2nd Edition
ISBN: 9780134458496
Author: List
Publisher: VST
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Question
Chapter 9, Problem 6Q
To determine
The difference between command & control policy and market-based policy.
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Students have asked these similar questions
Subway rides during rush hour
The subway system in your city is approximately in equilibrium. Given current
schedules, riders don't wait long for a train. Platforms are busy but not
overcrowded. In other words, rush-hour fares are such that the quantity of
rides supplied is about equal to the quantity demanded.
The directors of the system now come up with an idea to get more people out
of their cars and into the trains. Each time a rider buys a ride, 50 cents will be
automatically deposited into the rider's bank account. The funding for this
subsidy is to come from diverting a portion of gasoline taxes now paid by
motorists.
If this scheme works to increase ridership, the system is ready to provide more
rides and to adjust fares as needed to keep the system in approximate
equilibrium. When the plan goes into effect, what is likely to happen in the
diagram above?
Select one:
O a. D will increase, resulting in more rides at a higher fare.
O b. S will increase, resulting in more rides at…
What type of economists believe that markets naturally self-correct, and will reward good strategies and punish bad ones?
To what extent should the government interven in the market?
Write a long 500 word answer.
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- Subway rides during rush hour S D The subway system in your city is approximately in equilibrium. Given current schedules, riders don't wait long for a train. Platforms are busy but not overcrowded. In other words, rush-hour fares are such that the quantity of rides supplied is about equal to the quantity demanded. The directors of the system now come up with an idea to get more people out of their cars and into the trains. Each time a rider buys a ride, 50 cents will be automatically deposited into the rider's bank account. The funding for this subsidy is to come from diverting a portion of gasoline taxes now paid by motorists. If this scheme works to increase ridership, the system is ready to provide more rides and to adjust fares as needed to keep the system in approximate equilibrium. When the plan goes into effect, what is likely to happen in the diagram above? Select one: a. D will decrease as potential riders realize that driving has become more attractive. O b. P will fall,…arrow_forwardIs market failure either necessary or sufficient for government intervention?arrow_forwardWhat impact would child immuniation intervention have on demand and consumer behavior in the long run?arrow_forward
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