1) 0words 43 2 Question 20 20 1. Assume you own and occupy a duplex. You live in one unit and rent out the other unit. You notice your tenant has a clogged drain on an almost monthly basis. You are responsible for paying for the plumber or for unclogging the drain yourself, You suspect your tenant is pouring bacon grease down the drain because you often experience the smell of frying bacon coming from her apartment. Despite your questioning, your tenant denies putting bacon grease down the drain. Using economic terms (for example, efficient, marginal benefit, marginal cost) describe a solution to this dilemma. 2, Read the attached Wall Street Journal What is the external cost that some private citizens imposing on the public? Propose a solution which involves taxation. Whom is the tax imposed? Which group, buyers or sellers, will bear more of the cost of the tax? Why do you think so? 3. Propose a solution, other than taxing, which might bring about a more economically efficient outcome. Explain what, if anything, you can foresee could go wrong with your proposal, Who wins, that is, who would support your solution? Who loses, th is, who would oppose your solution? Everyone Pours Bacon Fat Down the Drain, Everyone Lies About It - WSJ.pdf Edit View Insert Format Tools Table TO BE v