1. Suppose that you do not have the equations for the supply or demand curves for diesel-powered school buses, but you know that the price elasticity of demand (d) is equal to-2.57 (minus 2.57) and the initial price P*=$70,000 and initial quantity Q*=80,000, what is the change in quantity (Q) when the price increases by $10,000 due to a tax (show step by step calculations to get points)?

1. Assume that state's goal/policy is to have 40% of the school bus fleet be electric by 2025. You are provided with the following list of policy impacts from a state perspective. The buses are made by a company in Georgia, but they will be maintained by school district fleet manager from Rhode Island. Also, a pre-feasibility study on electric bus adoption for school districts was conducted and paid for by the state government to an in-state consultancy/resident group (note: the validity of the impacts is irrelevant here, just think in which category you would place these impacts):

Buses Cost = $10.5

Fleet maintenance costs = $1.5

Greenhouse Gas Reductions = $1.8

Federal grant=$2.1

Children's health improvements due to lower air emissions = $5.4

State incentives/subsidies to school districts (aside from the federal grant)=$2.5

Scrap value=$0.4

Proper battery disposal expenditure= $0.2

Pre-feasibility study cost = $0.01

1. From a spender's perspective at state level the following are net benefits to the project:
2. $5,850,000
3. -$1,290,000
4. -$6,590,000
5. $11,881,000
6. From a guardian's perspective at state level the following are the net benefits of the projects:
7. +$1,900,000
8. +$711,000
9. -$9,710,000
10. -$3,400,000

1. From an analyst's perspective at a state level analysis the following are the net benefits of the projects:
2. -$5,010,000
3. +$5,010,000
4. +$3,800,000
5. -$3,130,000