Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello. I am struggling to answer these 5 questions for my Microeconomics ECO 110 class. Any help answering these questions so I understand for future
Hello. I am struggling to answer these 5 questions for my Microeconomics ECO 110 class. Any help answering these questions so I understand for future reference would be a great help. Thank you again for the time and effort to help me.
Question 6 (10 points) Identifying Goods (Unit 10) In the Dune sci-fi series, melange (aka "the spice") is a drug that gives some users the ability to see the future, allowing them to fly spaceships around without crashing into stuff. Unfortunately, melange can only be found on the desert planet Arrakis (also known as "Dune"), guarded by deadly, gigantic sandworms Assuming that the fields where melange is harvested are private property, this would make melange l l 15/ (excludabIeon-excludable). Since melange taken by one harvester can't be taken by another, it's also l l 15/ (rivalon-rival}. Therefore melange is a l .J v (private/club/public/common resource) good Once melange has been harvested, it can be made into a gas that many people can breathe at once. Therefore, melange gas is l l y (rivalon-rival). Since the harvester can charge a fee for it, melange gas is also excludable. Therefore, melange gas is a l l Q/ (private/public/common resource/club) good Question 7 (10 points) Identifying Goods (Unit 10) A playground slide (3.) is free for any child to use. Therefore, the slide is if i av (excludabIeon-excludable} For safety purposes, only one child can go down a slide at a time. The slide is therefore '/ (rivalon-rival) Playground slides are therefore l l y (private/club/common resource/public) goods. The problem with these goods is called the l l 35/ (Tragedy of the Commons/Free Rider} problem, in which there is too much l Q; (Supply/Demand) for the slide Question 8 (10 points) Re)sponses to Non-Excludable goods (Unit 10 In the James Bond movie Quantum ofSofacel2008), billionaire Dominic Greene buys large sections of Bolivia's desert in order to turn it into a wildlife sanctuary. The logic behind this is that before the purchase, the land belonged to nobody, making it l l 134/ (excludableon-excludable). Since the land was also rival, it was a l AJ (private/club/common resource/public.) good. As such, it faced the l l av (Free rider/Tragedy of the Commons) problem However, James Bond discovers that Greene's real plot is to create an artificial drought by blocking up a large underground river. Since this would decrease the Q/ (Supply/Demand) in water, the price of water would 15/ (increase/decrease), making tons of profits for Dominic Greene Question 9 (10 points) Responses to Non-Excludable goods (Unit 10) Youtube is a free website that hosts user-uploaded videos. Since anyone can freely watch videos on YouTube, YouTube is (excludableon-excludable). Since multiple people can watch the same video at once (even from opposite sides of the globe), a YouTube video is A/ (rivalon- rival). Therefore, YouTube is a A/ (private/club/common resource/public) good However, goods like YouTube face a problem called the A/ (Free Rider/Tragedy of the Commons) problem, in which there is (too muchot enough) incentive to supply YouTube as a service. As a result, Google introduced ads on YouTube in 2007 in order to A/ (tax/subsidize) YouTube and keep it free for everyoneQuestion 10 (10 points) Supply and Demand shifts (Unit 3) Suppose the Supply and Demand curves below represent the market for espresso coffee {i} Q During an exam week, students flock to the stores to buy more espresso. As a result, the ' Q/ (Supply/Demand} in espresso would increase to the I II 5/ (left/right) and the equilibrium price (P*) of espresso would ' Q/ (increase/decrease). The equilibrium quantity {Q*) of espresso would ' Q; (increase/decrease)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started