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Was demand for its products more elastic or inelastic and why? Were consumers well informed of the negative externalities?
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- How is the increase in post-secondary education (e.g. positive externality) going to effect consumer behavior in the future?Explain a positive and negative externality that you have recently consumed. Please relate your answer to the characteristics of elasticity. Why does the government have to get involved when an externality is present in the market?How market equilibrium is found with Pollution Abatement Subsidy? Also draw graph and interpret it.
- What public policy approach would be most reasonable to protect consumers from harmful products? How might market and economic forces play a role in protecting consumers?Gorwing use of social media, like facebook and snapchat it becomes more attractive for other people to use it too. A positive network externality, the snob effect, an external demand, a fad. Which one of the foolowing is the phenomenon which is being noticed here?Can you think of a reason why making cars safer would create negative externalities?
- draw a graph of a product without any externalityThe National Hockey League decides to put a new franchise in Hamilton which is close to existing teams in Buffalo and Toronto. Which of the following best describes the impact of this decision? Select one: a. product-variety externality, which harms consumers b. business-stealing externality, which benefits consumers c. product-variety externality, which benefits consumers d. business-stealing externality, which harms consumersWhat would happen if the government subsidized consumption of this product because it has positive externalities in consumption?
