This topic contains a solution. Click here to go to the answer

Author Question: What is the equilibrium price of a good or service? What will be an ideal ... (Read 69 times)

aabwk4

  • Hero Member
  • *****
  • Posts: 593
What is the equilibrium price of a good or service?
 
  What will be an ideal response?

Question 2

Suppose the government in a certain country wants to reduce urban sprawl.
 
  What measures could it take to ensure that people choose to live closer to the central business district? (Urban sprawl refers to the development of residential and commercial areas in the suburbs around the periphery of a city. One of the main problems with urban sprawl is that it leads to increased traffic congestion and air pollution as commuters travel to the city every day.)



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nguyenhoanhat

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

The equilibrium price is the price at which the quantity demanded by the buyers is equal to the quantity supplied by the sellers.

Answer to Question 2

The government could try to influence an individual's choice of where to live by changing the direct and indirect costs of living in the city and in the suburbs. The direct costs include the rental price of housing and the cost of commuting. The indirect cost includes the opportunity cost of the time that is spent commuting. If the government wants more people to live in the city, it needs to increase the costs of living away from the city and/or reduce the costs of living in the city. Some of the ways in which this can be done are listed below:
i. If taxes are imposed on traffic that is moving in and out of the city, the costs of commuting will increase. People may instead look for apartments within the city.
ii. A change in land use regulations may allow more apartments to be built in the city, lowering the rental price of apartments. This will enable more people to choose to move to the city.
iii. An increase in property taxes on houses in the suburbs will increase the cost of living outside the city leading individuals to look for housing within the city.



aabwk4

  • Hero Member
  • *****
  • Posts: 593

nguyenhoanhat

  • Sr. Member
  • ****
  • Posts: 332

 

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

For a complete list of videos, visit our video library