QUESTION 4 18)(5) Interstate 66 (1-66) travels East-West across Northern Virginia and ends in Washington. I-66 has been plagued with heavy traffic congestion since the early 1980's. About three years ago Virginia transformed I-66 into a High Occupancy/Toll (HOT) road. A HOT road is one in which drivers can either carpool or pay a toll. The toll changes in real time depending on traffic conditions: the more traffic the higher the toll. Until the pandemic the I-66 toll regularly reached over $40 for 11 miles of 1-66. A survey of 1-66 users indicated that most drivers paying the HOT toll were doctors and layers. Moreover, most of the lawyers worked in the private sector as a lobbyist or litigator. As a budding economist eager to use what you have learned in class, why do you think the HOT lanes users were willing to pay the toll instead of finding and alternative, slower, rout? Why specifically? 19)(5) Many universities have announced that they intend to require a COVID vaccination before allowing students to return to campus next Fall. Many students will have already voluntarily received the COVID vaccination; however, some schools feel it's important to get most, in not all, campus residents vaccinated. Use a supply and demand graph to show an economic argument for schools to require vaccines. 20)(5) Consider the daily market for bottles of sugary drinks. The market has a demand curve of P=36-1/2Q and a supply curve of P= /4Q. Concerned about obesity, Mayor Bowser wants to reduce the amount of bottled sold. How much of a tax should the government impose in order to see only forty (40) bottles sold? 21)(5) Consider a country where the government issues permits to manufacturing and agricultural concerns based on government scientists findings on sustainability. Without a permit, a farm may not grow and a factory many not produce. Permits are restricted in consideration of environmental factors. New research finds that government scientists made calculation errors. The correct calculation shows that twice as many permits should have been issued. The government confirms the new scientific findings and issues more permits. Construct a production possibilities frontier (PPF) with manufacturing goods on the vertical axis and agricultural goods on the horizontal axis to show the impact of the change in the number of permits. That is show the before and after impact of the change in the doubling the number of permits on the PPF. Attach File Browse Local Files Browse Content Collection