Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ly Lab 4 (Question 4) ~ Lyryx Learning Inc - Google Chrome laecon1.lyryx.com/student-servlets/LabServlet?ccid=3692 Question 4 [10 points] The local airport of a small town has

image text in transcribedimage text in transcribed
Ly Lab 4 (Question 4) ~ Lyryx Learning Inc - Google Chrome laecon1.lyryx.com/student-servlets/LabServlet?ccid=3692 Question 4 [10 points] The local airport of a small town has decided to begin allowing nighttime flights in an effort to accrue more income. The airport has a fixed supply of 50 spots for each night. The nightly demand for these flights are given in the table below. Quantity Demanded Landing/Takeoff (# flights) Fee ($) 10 cq 20 55 30 45 40 35 50 25 60 15 a) Graph the supply and demand curves on the graph below. Supply +06 Landing/Takeoff Fee ($) 75- 60 - 45 - 30 15 15 30 45 60 90 Reset Quantity of Flights per night b) What is the equilibrium landing/takeoff fee? Landing/Takeoff Fee = $0 c) What is the quantity of nighttime flights? Quantity of Flights = 0 9 ~ $51 / ENG 11:19 PM 2020-06-07Ly Lab 4 (Question 4) ~ Lyryx Learning Inc - Google Chrome laecon1.lyryx.com/student-servlets/LabServlet?ccid=3692 a) Graph the supply and demand curves on the graph below. Supply Landing/Takeoff Fee ($) 75- 60 45- 30- 15 15 30 45 60 90 Reset Quantity of Flights per night 75 b) What is the equilibrium landing/takeoff fee? Landing/Takeoff Fee = $0 c) What is the quantity of nighttime flights? Quantity of Flights = 0 d) Suppose the residents of the town are becoming upset with the increased noise at night from the flights, and so the government imposes a price floor on nighttime flights aimed at reducing the number of flights by 60 percent. What price floor is necessary to achieve this reduction? Price Floor = $0 e) Suppose, instead of a price floor, the government wants to find a market solution to this problem. Therefore, the government announces that local residents will be able to purchase flight permits (each permit is able to prevent one flight from taking off at the price of its landing/takeoff fee). How much, in total, would the local residents have to pay in order to enjoy totally flightless nights over the coming 20 nights? Total Payment = $0 Official Time: 23:19:15 SUBMIT AND MARK SAVE AND CLOSE ~ 951 / ENG 11:19 PM 2020-06-07

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Business Law And The Legal Environment

Authors: Richard A Mann, Barry S Roberts

10th Edition

0324593562, 9780324593563

More Books

Students also viewed these Economics questions

Question

Evaluate for any numbers m, n 0. xm - 1 lim x1 x 1

Answered: 1 week ago