Transcript Powerpoint Slides - askmar publishing

Microeconomics
for Public Decisions
Anne C. Steinemann
The Economy
as a System
•
Figure 1-1
The Economic System
Within the Ecosystem
•
Figure 1-2
The Demand Curve
•
Figure 2-1
Increase in Demand
•
Figure 2-2
Decrease in Demand
•
Figure 2-3
Decrease in
Quantity Demanded
•
Figure 2-4
Increase in
Quantity Demanded
•
Figure 2-5
The Supply Curve
•
Figure 2-6
Increase in Supply
•
Figure 2-7
Decrease in Supply
•
Figure 2-8
Increase in
Quantity Supplied
•
Figure 2-9
Decrease in
Quantity Supplied
•
Figure 2-10
Price Elasticity of
Demand
•
Page 29
ED
Q  Q / Q


P  P / P
f
i
f
i
i
i
Price Elasticity
of Demand
•
Figure 2-11
Estimates of the
Price Elasticity of
Demand
Good
Price Elasticity of
Demand
Housing
-0.01
Residential electricity
-0.13
Bread
-0.15
Bus travel
-0.20
Coffee
-0.25
Sugar
-0.30
Medical insurance
-0.31
Legal services
-0.37
Elastic Demand
•
Figure 2-11a
Inelastic Demand
•
Figure 2-11b
Unitary Elastic
Demand
•
Figure 2-11c
Elasticities Vary
Along a Straight Line
•
Figure 2-12
Relationship Between Price
Elasticities of Demand, Price,
Quantity and Total Revenue
ED
Price
Quantity
Total
Revenue
inelastic
increase
decrease
increase
inelastic
decrease
increase
decrease
elastic
increase
decrease
decrease
elastic
decrease
increase
increase
unitary
increase
decrease
no change
unitary
decrease
increase
no change
Price Elasticity of
Supply
•
Page 42
ES
Q  Q / Q


P  P / P
f
i
f
i
i
i
Derivation of the
Market Demand Curve from
Individual Demand Curves
Price Consumer A Consumer B
Total Quantity
Demanded
P
QA
QB
QT = Q A + Q B
$8
0.0
0.0
0.0
$7
2.5
0.0
2.5
$6
5.0
0.0
5.0
$5
7.5
0.0
7.5
$4
10.0
2.0
12.0
$3
12.5
4.0
16.5
$2
15.0
6.0
21.0
$1
17.5
8.0
25.5
$0
20.0
10.0
30.0
Derivation of a
Market Demand Curve
•
Figure 3-1
Effect of an Increase in
Individual Demand on Market
Demand
•
Figure 3-2
Derivation of the Market Supply
Curve from Individual Supply
Curves
Producer
Total Quantity
Price Producer A
B
Supplied Demanded
P
QA
QB
QT = QA + QB
$8
8
4
12
$7
7
3.5
10.5
$6
6
3
9
$5
5
2.5
7.5
$4
4
2
6
$3
3
1.5
4.5
$2
2
1
3
$1
1
0.5
1.5
$0
0
0
0
Derivation of a
Market Supply Curve
•
Figure 3-3
Market Demand and
Market Supply
Together
•
Figure 3-4
Market Equilibrium
•
Figure 3-5
Shortage: Quantity Demanded
Greater Than Quantity Supplied
•
Figure 3-6
Surplus: Quantity Supplied
Greater Than Quantity
Demanded
•
Figure 3-7
Change in Equilibrium
Due to a Supply
Decrease
•
Figure 3-8
Change in Equilibrium
Due to a Demand
Increase
•
Figure 3-9
Demand for
Conventionally Grown
Produce
•
Figure 3-10
Decrease in Demand for
Conventionally Grown
Produce
•
Figure 3-11
Decrease in Supply for
Conventionally Grown
Produce
•
Figure 3-12
Increase in Demand for
Organically Grown
Produce
•
Figure 3-13
Increase in Supply for
Organically Grown
Produce
•
Figure 3-14
Effects of Change in Supply and
Demand on Equilibrium Price and
Quantity
Supply
Equilibrium Equilibrium
Demand
Price
Quantity
increase
no change
decrease
increase
decrease
no change
increase
decrease
no change
increase
increase
increase
no change
decrease
decrease
decrease
increase
increase
indeterminate
increase
decrease
increase
increase
indeterminate
increase
decrease
decrease
indeterminate
decrease
decrease
indeterminate
decrease
Before a Tax
•
Figure 3-15
After a $2 Tax
on Producers
•
Figure 3-16
After a $2 Tax
on Consumers
•
Figure 3-17
Before a Subsidy
•
Figure 3-18
After a $2 Subsidy
to Producers
•
Figure 3-19
After a $2 Subsidy
to Consumers
•
Figure 3-20
Price Floor
•
Figure 3-21
Price Ceiling
•
Figure 3-22
Output Quota
•
Figure 3-23
Rent Control
•
Figure 3-24
Agricultural
Price Supports
•
Figure 3-25
Supply and Demand
with a Price Cap on
Electricity
•
Figure 3-26
Consumer Surplus
(A)
•
Figure 4-1
Willingness to
Pay for Park Visits
•
Figure 4-2
Demand Curve
for Park Visits
•
Figure 4-3
Effect of a Price
Change
•
Figure 4-4
Comparison
of Consumer Surplus
•
Figure 4-5
Indifference Curves for
an Individual
Consumer
•
Figure 4-6
Substitution and Income
Effects for a Normal
Good
•
Figure 4-7
Substitution and Income
Effects for an Inferior
Good
•
Figure 4-8
Budget Line for
Budget Constrain of
$80
•
Figure 4-9
Point of Maximum
Utility
•
Figure 4-10
Income Expansion
Path
•
Figure 4-11
Derivation
of Demand Curve
•
Figure 4-12
Income Grant
for Infrastructure
•
Figure 4-13
Subsidy
for Infrastructure
•
Figure 4-14
Tied Grant
for Infrastructure
•
Figure 4-15
Weekday CTA
Rapid Rail Passenger Average
Before and During Dime Time
Program
Income
Class
Before Dime Time
(Fare = $0.25)
During Dime Time
(Fare = $0.10)
Low
9,500
15,020
Moderate
8,250
10,860
High
5,100
6,410
Total
22,850
32,290
Dime Time Weekday
CTA Rapid Rail Passenger
Averages
by Prior Mode of Travel
Prior Mode of
Travel
Dime Time
Moderat
Low
High Total
e
9,500
8,250
5,100
22,850
Non-Dime Time
625
380
310
1,315
Bus and Trolley
1,080
680
340
2,100
Auto Driver
895
525
400
1,820
Auto Passenger
220
75
80
375
Walk
850
380
90
1,320
1,850
570
90
2,510
15,020
10,860
6,410
32,290
Trip Not Made
Total
Aggregate Demand
for Income Group
•
Figure 4-16
Total Change
in Consumer Surplus
•
Figure 4-17
Changes in Consumer Surplus for
Previous and New Riders
(dollars per day)
Income
Class
Previous
Riders
New
Riders
Change in
Consumer Surplus
Low
$1,425.00
$414.00
$1,839.00
Moderate
1,237.50
$195.75
1,433.25
High
765.00
$98.25
863.25
Total
$3,427.50
$708.00
$4,135.50
Hypothetical
Indifference Curves for
an Individual
•
Figure A4-1
Costs and Revenues
for Meals-on-Wheels
Number
Total Variable Total Average Marginal
of Meals
Profit
Revenue Cost
Cost Total Cost
Cost
per Day
0
0
15.00
-15.00
3
18.00
7.50
22.50
7.50
2.00
-4.50
6
36.00
16.50
31.50
5.25
3.50
4.50
9
54.00
30.00
45.00
5.00
5.00
9.00
12
72.00
48.00
63.00
5.25
6.50
9.00
Cost Curves
for Meals-on-Wheels
•
Figure 5-1
Marginal Revenue >
Average Variable Cost
•
Figure 5-2
Marginal Revenue <
Average Variable Cost
•
Figure 5-3
Breakeven Point
and Shutdown Point
•
Figure 5-4
Short-Run Production
•
Figure 5-5
Derivation of
the Supply Curve
•
Figure 5-6
Long-Run
Average Total Cost
•
Figure 5-7
Long-Run Average Total
Cost and Economies of
Scale
•
Figure 5-8
Long-Run Supply
Curve for a
Competitive Firm
•
Figure 5-9
Producer Surplus
•
Figure 5-10
Decrease in Producer
Surplus Due to a Decrease
in Price
•
Figure 5-11
Vacant Lot
Clearance Program
Budget
Part-Time Young Employees
Wage
Supervisory Personnel
Fringes
Quarter Time
Two Full Time
Materials
Trash bags, rakes
5,000
Truck rental
6,000
Total
$60,000
6,000
5,000
18,000
$100,000
Tons of Trash Collected per Day
as a Function of Daily Use
of Trucks and Labor-hours
Labor-Hours per Day
50
200
350
500
650
800
Trucks per Day
5
10
15
20
40
50
65
90 116
93 120 147
107 134 165
110 140 177
110 140 183
20
60
128
161
187
205
217
Tons of Trash Collected per
Day by Cambridge Sanitation
Dept.
•
Figure A5-1
Isoquant for Output of
100 Tons per Day
•
Figure A5-2
Isoquants for Various
Daily Output Levels
•
Figure A5-3
Isoquant for Q = 60
•
Figure A5-4
Alternate Isoquants for
Various Output Levels
•
Figure A5-5
Tons of Trash Collected per
Day by Cambridge Sanitation
Dept.
•
Figure A5-6
Marginal Product Curve (Q =
5K) of Production for Fixed
Amount
•
Figure A5-7
Social Surplus Under
Competitive Equilibrium
Conditions
•
Figure 7-1
Changes in Social Surplus
Due to Deviations from the
Competition
•
Figure 7-2
Changes in Social
Surplus Due to a Price
Floor
•
Figure 7-3
Changes in Total Social
Surplus Due to a Price
Floor
Changes in Surplus from a Price
Before Price Floor After Price Floor
Floor
Change
Consumer surplus
I+II+III
I
-II-III
Producer surplus
IV+V
II+IV
II-V
I+II+III+IV+V
I+II+IV
-III-V
Benefits
Costs
Net
-II-III
-II-III
Social surplus
Distribution of Benefits and
Costs of a Price Floor
Consumers
Producers
II
-V
II-V
Society
II
-II-III-V
-III-V
Changes in Social
Surplus Due to a Price
Ceiling
•
Figure 7-4
Changes in Total Social
Surplus Due to a Price
Ceiling
Changes in Surplus from a
Price Ceiling
Before Price Floor After Price Floor
Change
Consumer surplus
I+II
I+III
III-II
Producer surplus
III+IV+V
V
-III-IV
I+II+III+IV+V
I+III+V
-II-IV
Benefits
Costs
Net
III
-II
III-II
-III-IV
-III-IV
-II-III-IV
-II-IV
Social surplus
Distribution of Benefits and
Costs of a Price Ceiling
Consumers
Producers
Society
III
Changes in Social
Surplus Due to an
Output Quota
•
Figure 7-5
Changes in Total Social
Surplus Due to a Output
Quota
Changes in Surplus from an
Output Quota
Before Price Floor After Price Floor
Change
Consumer surplus
I+II+III
I
-II-III
Producer surplus
IV+V+VI
II+IV+VI
II-V
I+II+III+IV+V+VI
I+II+IV+VI
-III-V
Social surplus
Distribution of Benefits and
Costs of an Output Quota
Benefits
Consumers
Costs
Net
-II-III
-II-III
Producers
II
-V
II-V
Society
II
-II-III-V
-III-V
Changes in Social
Surplus Due to a Tax
•
Figure 7-6
Changes in Total
Social Surplus Due to
a Tax
Changes in Surplus from a
Tax
Before Price Floor After Price Floor
Change
Consumer surplus
I+II+III
I
-II-III
Producer surplus
IV+V+VI
VI
-IV-V
II+IV
II+IV
I+II+III+IV+V+VI
I+II+IV+VI
-III-V
Benefits
Costs
Net
Consumers
-II-III
-II-III
Producers
-IV-V
-IV-V
Government
Social surplus
Distribution of Benefits and
Costs from a Tax
Government
II+IV
Society
II+IV
II+IV
-II-III-IV-V
-III-V
Changes in Social
Surplus Due to a
Subsidy
•
Figure 7-7
Changes in Total
Social Surplus Due to
a Subsidy
Changes in Surplus
Before
from a Subsidy
Price Floor
After Price Floor
Change
Consumer surplus
I+II
I+II+VI+VII+VIII
VI+VII+VIII
Producer surplus
VI+X
II+III+IV+VI+X
II+III+IV
Government
Social surplus
Distribution of Benefits and
Costs from a Subsidy
-II-III-IV-V-VI-VII-VIII-IX -II-III-IV-V-VI-VII-VIII-IX
I+II+VI+X
I+II+VI+X-V-IX
Benefits
Costs
-V-IX
Net
Consumers
VI+VII+VIII
VI+VII+VIII
Producers
II+III+IV
II+III+IV
Government
Society
II+IIII+IV+VI+VII+VIII
-II-III-IV-V-VI-VII-VIII-IX
-II-III-IV-V
-VI-VII-VIII-IX
-II-III-IV-V-VI-VII-VIII-IX
-V-IX
Effect of a Tariff
on Social Surplus
•
Figure Q7-1
Competitive and
Monopolistic Markets:
Supply
•
Figure 8-1
Competitive and
Monopolistic Markets:
Demand
•
Figure 8-2
Revenue for a
Monopolist
Average
Total Marginal
Output
Revenue (price)
Revenue Revenue
$10
1
$10
$10
9
2
18
8
8
3
24
6
7
4
28
4
6
5
30
2
5
6
30
0
4
7
28
-2
3
8
24
-4
2
9
18
-6
1
10
10
-8
Marginal Revenue and
Average Revenue for a
Monopoly
•
Figure 8-3
Monopoly Price and
Output Determination
•
Figure 8-4
Monopoly Profits
•
Figure 8-5
Monopoly Price
Regulation
•
Figure 8-6
Comparison of Marginal Cost
Under Perfect Competition and
Monopoly
•
Figure 8-7
Negative Externalities:
Social Costs Greater Than
Private Production Costs
•
Figure 9-1
Negative Externalities:
Social Costs Greater Than
Private Consumption Costs
•
Figure 9-2
Negative Externalities:
Social Costs Greater Than
Private Production Benefits
•
Figure 9-3
Negative Externalities:
Social Costs Greater Than
Private Consumption Benefits
•
Figure 9-4
Bargain Between
Two Parties
•
Figure 9-5
The Efficient Solution:
Marginal Benefits Equal
Marginal Costs of Positive
Externality
•
Figure 9-6
The Efficient Solution:
Marginal Benefits Equal
Marginal Costs of Negative
Externality
•
Figure 9-7
Results of CV Experiment
for the Indianapolis
Crooked Creek Greenway
Property
County
Renters
Owners
Residents
Respondents - Survey
47%
8%
26%
Respondents - Solicitation
39%
7%
17%
Prior CCG Awareness
18%
11%
9%
Willing to Contribute Survey
51%
35%
22%
Willing to Contribute Solicitation
36%
14%
11%
Mean WTP — Survey
$47.20
$10.71
$29.07
Mean WTP — Solicitation
$32.24
$13.33
$34.50
Monthly Cost of
Pollution Reduction
Quantity
Removed
(tons)
Knotty Pine
Wall Board
Total Cost
Marginal
Cost
Total Cost
Marginal
Cost
1
$200
$200
$500
$500
2
600
400
1,000
500
3
1,200
600
3,500
2,500
4
2,000
800
7,000
3,500
5
3,000
1,000
12,000
5,000
6
5,000
2,000
20,000
8,000
7
8,000
3,000
8
12,000
4,000
9
20,000
8,000
10
36,000
16,000
Marginal Costs of
Pollution Reduction
Reduction
(tons/month)
Knotty Pine
Wall Board
Total
1
$200
$500
$200 (KP)
2
400
500
400 (KP)
3
600
2,500
500 (WB)
4
800
3,500
500 (WB)
5
1,000
5,000
600 (KP)
6
2,000
8,000
800 (KP)
7
3,000
1,000 (KP)
8
4,000
2,000 (KP)
10
16,000
3,000 (KP)
15
8,000 (WB)
Tax to Correct for
Negative Externality
•
Figure 9-8
Subsidy to Correct for
Positive Externality
•
Figure 9-9
Marketable
Pollution Permits
•
Figure 9-10
Classification of
Goods
•
Figure 10-1
Demand for
Two Consumers
Price
Consumer A
Consumer B
$10
0
0
9
1
2
8
2
4
7
3
6
6
4
8
5
5
10
4
6
12
3
7
14
2
8
16
1
9
18
0
10
20
Consumer Demand
•
Figure 10-2
Market Demand:
Private Production
Price Consumer A Consumer B Market Demand
$10
0
0
0
9
1
2
3
8
2
4
6
7
3
6
9
6
4
8
12
5
5
10
15
4
6
12
18
3
7
14
21
2
8
16
24
1
9
18
27
0
10
20
30
Determining Market
Demand: Private
Production
•
Figure 10-3
Aggregate Demand:
Public Production
Quantity Consumer A Consumer B
Total Social
Benefits
1
$9.00
$9.50
$18.50
3
7.00
8.50
15.50
5
5.00
7.50
12.50
7
3.00
6.50
9.50
9
1.00
5.50
6.50
10
0.00
5.00
5.00
12
4.00
4.00
14
3.00
3.00
16
2.00
2.00
18
1.00
1.00
20
0
0
Determining Aggregate
Demand: Private Production
•
Figure 10-4
Combining Demand
Curves for a Private
Good
•
Figure 10-5
Combining Demand
Curves for a Public
Good
•
Figure 10-6
Majority
Voting Inefficiencies
Inefficient No Vote
John
Claire
Catherine
Sum
Benefits
$650
$350
$300
$1,300
Costs
Vote
400
yes
400
no
400
no
1,200
no
Inefficient Yes Vote John Claire Catherine Sum
Benefits
Costs
Vote
$450
400
yes
$450
400
yes
$0
400
no
$900
1,200
yes
Voting Paradox
John
Claire
Catherine
Path
1st choice
3rd choice 2nd choice
Park
2nd choice
1st choice
3rd choice
Pool
3rd choice 2nd choice
1st choice
Majority Voting Outcomes
Path vs. Park
Path wins
Park vs. Pool
Park wins
Path vs. Pool
Pool wins
Demand for a Public Good
with a Marginal Cost of
Zero
•
Figure 10-7
Demand and Costs
for a Utility Company
•
Figure 10-8
Demand and Costs for
Two Publicly Provides Goods
with Different Demand Curves
•
Figure 10-9
Pricing Options for a
Publicly Provided
Good
•
Figure 10-10
Demand and Costs for a
Public Facility with Variable
Demand
•
Figure 10-11
Market for
Low-Quality Cars
•
Figure 11-1
Market for
High-Quality Cars
•
Figure 11-2
Utility of Income
•
Figure 11-3
Utility Function for
Risk-Averse
Individuals
•
Figure 11-4
Utility Function for
Risk-Prone Individuals
•
Figure 11-5
Utility Function for
Risk-Neutral
Individuals
•
Figure 11-6
Decision Tree for
Calculating Expected
GPA
•
Figure 11-7
Decision Tree for
Water Management
Decision
•
Figure 11-8
Utility Curve for
Money: $0 to $100
•
Figure 11-9
Value of Perfect Information
for Water Management
Decision
•
Figure 11-10
Value of Imperfect
Information for Water
Management Decision
•
Figure 11-11
Cash Flow Diagram
and Time Positions
•
Figure 12-1
Positive and Negative
Cash Flows
•
Figure 12-2
Relationships Between
Present, Future and Annual
Values
•
Figure 12-3
Example: Savings and
Withdrawals
•
(a) Deposit $1,000 into
bank account
Example: Savings and
Withdrawals
•
(b) Present value
Example: Savings and
Withdrawals
•
(c) Deposit at
beginning of year
Example: Savings and
Withdrawals
•
(d) Present value of
future withdrawal
Example: Savings and
Withdrawals
•
(e) Present value of
annual payment
Example: Savings and
Withdrawals
•
(f) Present value at
end of 10 years
Example: Savings and
Withdrawals
•
(g) Annual payments
to pay bond issue
Example: Savings and
Withdrawals
•
(h) Annual payments
over 20 years
Example: Savings and
Withdrawals
•
(i) Present value of
four years tuition
Examples of Private Sector and
Public Sector Cost-Benefit
Analyses
•
Figure 13-1
Comparison of
Alternatives by Different
Methods of CBA
Project A Purchase
Park Maintenance
Equipment
Project B Purchase
Street Repair
Equipment
Initial Investment
Savings
-$8,000
-$8,000
Year 1
$1,000
$6,000
Year 2
2,000
2,000
Year 3
2,000
2,000
Year 4
7,000
1,000
NPV (5%)
$2,253
$2,079
NPV (10%)
$846
$1,293
B/C ration (5%)
1.28
1.26
B/C ration (10%)
1.11
1.16
13.6%
20.3%
5%
10%
4 years
2 years
Internal rate of return
Incremental ROR
Payback period
Net Present Value
Method
•
Page 335
 n Bt   n Ct 
NPV  
t   
t 
 t0 1 r    t0 1 r  
Benefit-Cost Ratio
•
Page 336
 n
Bt 

t 
 t0 1 r  
B/C 
 n Ct 

t 
 t0 1 r  
Internal Rate of
Return
•
Page 338
 n Bt   n Ct 

t   
t 
 t0 1 r    t0 1 r  
Comparison of Alternatives by
Incremental Rate of Return
Analysis
Project A Project B Project C
Initial investment
-$8,000
-$8,000
-$10,000
Year 1
1,000
6,000
5,000
Year 2
2,000
2,000
3,000
Year 3
2,000
2,000
2,000
Year 4
7,000
1,000
4,000
Rate of return
13.6%
20.3%
16.2%
Comparison of Alternatives by
Incremental Rate of Return
Analysis
Project A
(challenger)
Project B
(defender)
Incremental
Cash Flow
-$8,000
-$8,000
$0
Year 1
1,000
6,000
-5,000
Year 2
2,000
2,000
0
Year 3
2,000
2,000
0
Year 4
7,000
1,000
6,000
Rate of return
13.6%
20.3%
6.3%
First Pairwise
Initial investment
Comparison of Alternatives by
Incremental Rate of Return
Analysis
Project C
(challenger)
Project B
(defender)
Incremental
Cash Flow
-$10,000
-$8,000
-$2,000
Year 1
5,000
6,000
-1,000
Year 2
3,000
2,000
1,000
Year 3
2,000
2,000
0
Year 4
4,000
1,000
3,000
Rate of return
16.2%
20.3%
9.6%
Second Pairwise
Initial investment
Distribution of Benefits
and Costs: Positive Net
Benefits
Susan Laura Debra John
Benefits
$10
$100
$10
$10
Costs
-$20
-$20
-$20
-$20
Benefits - Costs
-$10
$80
-$10
-$10
Net Benefits = -10 + 80 -10 -10 = $50
Distribution of Benefits and
Costs: Negative Net
Benefits
Susan Laura Debra John
Benefits
$20
$20
$20
$20
Costs
-$10
-$60
-$10
-$10
Benefits - Costs
$10
-$40
$10
$10
Net Benefits = -40 + 10 + 10 + 10 = -$10
Demand for
Bridge Crossings
•
Figure 14-1
Effects of
Sultan Island Bridge
Costs
Previous ferry riders
$25,000
New travelers
$25,000
Ferry owner
-$5,000
Taxpayers
-$40,000
Unadjusted net dollar impact
$5,000
Effects of Sultan Island
Bridge ($0.25 toll)
Costs
Previous ferry riders
$12,500
New travelers
$6,250
Ferry owner
-$5,000
Taxpayers
-$15,000
Unadjusted net dollar impact
-$1,250
Demand for Bridge
Crossings (fare of
$0.25)
•
Figure 14-2
Demand for
Ferry Crossings
•
Figure 14-3
Parkview Recreational
Facility Annual Costs
Costs/year
Construction and land acquisition
costs
$50,000
Forgone tax revenue
10,500
Annual operating expenses
14,000
$74,500
Demand for Parkview
Recreational Facility
Admission Fee
Annual Number of Users
$1.20
0
1.10
10,000
1.00
20,000
0.90
30,000
0.80
40,000
0.70
50,000
0.60
60,000
0.50
70,000
0.40
80,000
0.30
90,000
0.20
100,000
0.10
110,000
0
120,000
Demand for Parkview
Recreational Facility
•
Figure 14-4
Low-Income and Total
Demand for Recreational
Facilities
•
Figure 14-5
Price Floor
and Price Ceiling
•
Figure Q3-1
Consumers vs.
Producers Bear Full
Amount of Tax
•
Figure Q3-2
Change in
Consumer Surplus
•
Figure Q4-1
Effect of a Tariff
on Social Surplus
•
Figure Q7-1
Demand for
Parking Spaces
•
Figure Q13-1