Described as a market in equilibrium, Macroeconomics

Camping at Wilson's Promontory, a national park in Victoria, isn't free, but for many years now not everyone who wants to camp at Wilson's Promontory during the Christmas holidays can be accommodated, and the allocation of camping spots is settled by a lottery.

a. Could the market for campsites in Wilson's Promontory during the Christmas season be described as a market in equilibrium? Explain why or why not with the aid of a diagram. (Note: draw the supply curve of campsites as a vertical line as the number of campsites is determined administratively with concern for the environment in mind. The supply of campsites is therefore not influenced by the price of campsites)

b. As an alternative to rationing by lottery, what price adjustment can the park administrators make to deal with the holiday season shortage of campsites at the current price?

c. Compare the relative merits of lotteries and price adjustments as rationing methods. How should campsites at Wilson's Promontory be allocated among demanders? 

 

 

Posted Date: 2/27/2013 7:41:48 AM | Location : United States







Related Discussions:- Described as a market in equilibrium, Assignment Help, Ask Question on Described as a market in equilibrium, Get Answer, Expert's Help, Described as a market in equilibrium Discussions

Write discussion on Described as a market in equilibrium
Your posts are moderated
Related Questions
Q. Define Nominal wages? The nominal wage is wage per unit of time in the currency used in the country- what we usually just call wage. When we mention wage in macroeconomics w

Suppose that Ana is buying only 2 goods: good 1 and 2. If the price of good 1 doubles and the price of good 2 drops by one third, then what happens with the budget constraint? (Ass

Typical start-up businesses' estimated profit are forecasted as following: State Bad Good Probability 81% 21%

This release also states that the Federal Reserve is in the process of purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt. Additio

#qDiscuss the functions of money Illustrate your answeruestion..

Illustrates about the terms of elasticity? • Definition of elasticity a. Price elasticity of demand b. Income elasticity of demand and c. Price elasticity of supply

An attorney supplies 40 hours of work per week when her fee is $100 per hour but supplies 60 hours of work per week when her fee rises to $120 per hour. Using the midpoint formula,

Q. Define the Real wage? Consider the following scenario. You work full time and during January 2008 you make 2000 euro after tax. A certain basket of goods and services costs

Q. Define Effective exchange rate? Suppose that we are interested in external competitiveness of a country, let's say Japan. To do this we could look at evolution of a particul

One of our clients is a major homebuilder in the Midwest. This company believes that sales of their new homes are highly correlated with business cycles in the overall US economy.