Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 2, Problem 12CQ
To determine
Explain the selling of ticket at a lower price and a higher price.
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Economics: Private and Public Choice (MindTap Course List)
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- Why does control of prices of some commodities by the government become inevitable? Need a full explanation.arrow_forwardThe government in your country is considering three programs that affect the market for cigarettes. Program 1: Media campaigns and labelling requirements aimed at making the public aware of the dangers of cigarette smoking Program 2: A price-support program for tobacco farmers Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases. The aim of the government is to support farmers while reducing the consumption of cigarettes. What program of combination of programs should be implemented? Why?arrow_forwardChoose one of the following examples and explain whether you think that the government should ban the product. Cigarettes. Beer, wine, or liquor. Fast food.arrow_forward
- Describe what would happen to the equilibrium price of marijuana if it were legalized.arrow_forwardRecently, the Metropolitan Transportation Authority (MTA) voted to pass a policy that charges drivers who enter Manhattan (New York City) on the weekdays from 5am to 9pm, and 9 am to 9 pm on the weekends. Passenger vehicles (small cars) would be charged $15, trucks would be charged anywhere from $24-$36 depending on size, and motorcycles would be charged $7.50. During the other hours, the charges and tolls will be decreased. Which of following statements is true? The MTA believes the highest external cost of driving occurs after 9pm. The MTA is subsidizing drivers in NYC. The MTA believes that the external cost of trucks is greater than passenger vehicles and motorcycles. Currently (before the tolls go into effect), NYC has the socially optimum quantity of drivers.arrow_forwardWhen are government intervention or government regulations beneficial to consumers? when they impose regulations on businesses that limit profits when they limit consumer choices by regulating goods sold by private firms when they limit the number of businesses permitted to open and sell goods to consumers when they impose safety regulations that determine how bicycle helmets are manufacturedarrow_forward
- What is the purpose of a boycott? Describe the characteristics of companies and consumers that are likely to be involved in a boycott situation. What circumstances would cause you to consider participating in a boycott?arrow_forwardImagine that the government wages a major war on illicit drugs. Assuming that at the point of initial market equilibrium demand for illicit drugs is ELASTIC, what should happen to the amount of money that the drug dealers are getting from selling the drugs if the government measures are successful and the supply of illicit drugs at the market drops? The amount of money received by the drug dealers goes down The amount of money received by the drug dealers does not change The amount of money received by the drug dealers goes uparrow_forwardThe government in your country is considering three programs that affect the market for cigarettes. Program 1: Media campaigns and labeling requirements aimed at making the public aware of the danger of cigarette smoking. Program 2: A price support program for tobacco farmers. Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases. The aim of the government is to support farmers while reducing the consumption of cigarettes. What program or combination of programs should be implemented and why?arrow_forward
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