Back story:

Yet another torrential rainstorm has smashed into the city of Houston, causing severe flooding conditions and property damage. The municipal government signs a contract with a local construction company named Texas Water Works (TWW) to expand a Bayou drainage system in the most heavily damaged neighborhoods.

At first, all stakeholders are pleased with the contract. However, before construction begins, a pair of disturbing revelations disrupts the TWW's development plans.

First, a local environmental group launches a series of protests about a threatened bat colony that is discovered under bridges across the construction site. Next, a local news station breaks an investigative story that representatives of TWW may have paid a financial "gratuity" to a government official shortly before the official approved the environmental terms of the project.

Question:

TWW expected to earn $1 billion in profits from construction before the investigative report and the environmental protests.

Choice a: Do nothing and proceed with the project as originally planned.

Choice b: Shut down the project.

Answer each question based on the best choice to make.. Explain the rationale behind your decisions for each question.

Use the following questions to explain your decision.

1. How may the supply and demand of local real estate be impacted by these decisions?

2. How may the market price of local real estate be impacted by these decisions?

3. May the answers to these questions change as time passes?

4. From a Faith perspective, how should we address the value of human and bat life?

5. Can traditional economic models adequately quantify these factors?