Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 17, Problem 25APA
To determine
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price
100
90
MPC-MSC
80
70
30,67.5
60
40,60)
50
30,45)
40
40,37.5)
MSB
30
20
10
MPB
10 20 30 40 50 60 70 80 90 100
quantity of trees (thousands)
Trees planted in urban areas improve air quality, reduce soil erosion, and moderate
temperatures in hot cities. The figure depicts the market for trees planted in Tempe, Arizona.
What is the value of the deadweight loss if the market is unregulated?
To review this concept, see the section Positive Externalities.
100
50
225
112.5
$15
$12
$8
28
Select one:
a. $7
b. $3
500 700
C. $4
d. $15
Supply
Social value
Demand
The figure above shows a market for Softella medicated tissues. Assume the only use for the tissues
is to wipe and clean your hands, which prevents the spread of germs to others. If the government
were to subsidize the users of the tissues, what would be the dollar amount of the subsidy?
Quantity of boxes of
so ftella medicated
tissues
7
The table shows cost data for producing different
amounts of higher education. The market for higher
education produces positive externalities in the form
of more informed voters and higher rates of
technological growth. Use the information in the table
to answer the question
Supply
Price
3
18
33
48
63
27
30
33
36
39
× 39
Private
Demand
37
30
23
16
9
Private +
Social
Demand
57
50
43
36
29
How much higher education would we expect to be
produced in the free market?
Chapter 17 Solutions
Macroeconomics
Ch. 17.1 - Prob. 1RQCh. 17.1 - Prob. 2RQCh. 17.2 - Prob. 1RQCh. 17.2 - Prob. 2RQCh. 17.2 - Prob. 3RQCh. 17.2 - Prob. 4RQCh. 17.3 - Prob. 1RQCh. 17.3 - Prob. 2RQCh. 17.3 - Prob. 3RQCh. 17.4 - Prob. 1RQ
Ch. 17.4 - Prob. 2RQCh. 17.4 - Prob. 3RQCh. 17.4 - Prob. 4RQCh. 17 - Prob. 1SPACh. 17 - Prob. 2SPACh. 17 - Prob. 3SPACh. 17 - Prob. 4SPACh. 17 - Prob. 5SPACh. 17 - Prob. 6SPACh. 17 - Prob. 7SPACh. 17 - Prob. 8SPACh. 17 - Prob. 9SPACh. 17 - Prob. 10APACh. 17 - Prob. 11APACh. 17 - Prob. 12APACh. 17 - Prob. 13APACh. 17 - Prob. 14APACh. 17 - Prob. 15APACh. 17 - Prob. 16APACh. 17 - Prob. 17APACh. 17 - Prob. 18APACh. 17 - Prob. 19APACh. 17 - Prob. 20APACh. 17 - Prob. 21APACh. 17 - Prob. 22APACh. 17 - Prob. 23APACh. 17 - Prob. 24APACh. 17 - Prob. 25APACh. 17 - Prob. 26APACh. 17 - Prob. 27APACh. 17 - Prob. 28APACh. 17 - Prob. 29APACh. 17 - Prob. 30APA
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