Homework 21D 13. Problem #8: a) This equation does not represent equilibrium be ause some people ma!

not ha"e to work. There#ore$ the! don%t ne essaril! need to take the shorter route. &s more people use side streets$ the amount o# people between those usin' side streets and the hi'hwa! will equili(e. b) This mi'ht be an equilibrium s!stem. Howe"er$ those who pa! #or 'as at the #irst station will be pa!in' more than those at the se ond station unless the ser"i e at the #irst station is slower than the se ond and the ustomer "alues ustomer ser"i e. ) This is not an equilibrium be ause i# the o"er rowded lass o# students #rom lass & trans#erred o"er to the empt! lasses in lass ) without an! additional osts and tau'ht b! equall! ompetent tea hers$ o"er time the #low o# students #rom lass & should steadil! slow towards lass ) until equilibrium is rea hed. 1*. Problem #+: a) This situation would ob"iousl! not be e##i ient. ,# the students are not utili(in' the ele tri it! that%s 'i"en to them$ it is a waste i# the! are elsewhere. ,t ould sa"e ele tri it! and mone! osted to run it. ,t would make the situation more e##i ient i# the students turned on the ele tri it! onl! when utili(in' it. b) This is not e##i ient. ,nstead o# ser"in' diners that the onsumers don%t like$ it would be bene#i ial to them to ser"e #ood like roast turke! #or the same ost-pri e-amount in order to bene#it the desires o# the ma.orit! o# the rowd as well. ) This is not e##i ient due to the #a t that those who need it #or their de'ree aren%t able to take the lass be ause those who want to take it as ele ti"es ha"e si'ned up alread!. & solution to this would be to #ind out whether or not those who need it #or their de'rees would be willin' to pa! those who take it as ele ti"es in order to take the lass. 1/. Problem #10: a) ,# 'o"ernment pa!s the #ull tuition #or e"er! sin'le person who desires to 'o to olle'e$ it would be in tremendous de#i it. 1here all the mone! omes #rom would be a le'itimate on ern$ as well as how to bud'et out edu ation with e"er!thin' else. 2in e it is #ree$ that would be an in enti"e #or the "ast ma.orit! o# people to si'n up. b) ,# the 'o"ernment pro"ides unemplo!ment bene#its #or those who don%t ha"e a .ob$ people ould easil! take ad"anta'e o# that whole ordeal and use it as a sour e o# in ome

and ha"in' an in enti"e to quit their old .obs and do absolutel! nothin'$ pretendin' to be 3laid o##.3 14. Problem #11: a) This poli ! promotes in enti"e #or people to smoke less. )! makin' the pri e o# toba o more e5pensi"e$ it will pro'ressi"el! dri"e ustomers awa! who do not wish to blow a portion o# their mone! #or a pa k o# i'arettes. &nother ost would be health are6 the more smokers$ the more han es o# lun' an er and other diseases o urin'. The ta5 reall! helps people de ide whether or not it is worth to smoke. b) This poli ! promotes in enti"e #or people to 'et their hildren "a inated. )! ompletin' a simple and prompt ta5$ it an 'i"e immunit! to the hild #or ertain "iral diseases$ whi h would ha"e osted health insuran es i# the hild were to a quire the disease without "a inations. The #amil! is also awared 7100 b! doin' so. ) This poli ! mostl! promotes altruism to tutor low8in ome #amilies. This results in better standards o# edu ation and better per#orman e amon' these hildren. &lso$ the e##i ien ! o# these students must be obser"ed. d) This ta5 reates the in enti"e to emit #ewer air pollutants. Pollution has a ne'ati"e side e##e t #or others: it de reases air qualit! and results in a "ariet! o# health issues 9#or e5ample$ asthma). ,n de idin' how mu h pollution to dis har'e$ a ompan! doesn%t normall! take in these ne'ati"e side e##e ts su##i ientl! into a ount. The ta5 is a wa! to make pollution more e5pensi"e in order to make the ompan! #a e the ost that a##e ts others. 1:. Problem #12: a) 1hen dri"in'$ the dri"ers don%t normall! take into onsideration what kinds o# pollution the! are emittin' to the earth with their "ehi les. ;ne wa! 'o"ernments ould inter"ene on this would to ta5 #uel and ars that ha"e low 'as milea'e. 1ith this ta5$ pollution would be e5pensi"e$ thus dri"in' more people awa! #rom it. b) The market in this situation leads to too #ew or no streetli'hts in 1ood"ille at all. Howe"er$ the 'o"ernment has the abilit! to impro"e residents< wel#are b! pa!in' #or streetli'ht installation #rom the ta5es paid b! residents.