Economics, Macroeconomics

Consider the following: The city council has just approved the construction of a water park in your town. You are responsible for studying the impact of the new water park on the local economy and surrounding community.
You know that the water park will increase the traffic flow in the streets around the water park. There are both businesses and neighborhoods adjacent to the increased traffic flow. The cost to the community is estimated to be $6 per person. What kind of externality is this? Why? Graph the market for water park business, labeling the demand curve, the social-value curve, the market equilibrium level of output, and the efficient level of output. What is the per-unit amount of the externality?
Posted Date: 10/28/2012 11:39:11 PM | Location : United States







Related Discussions:- Economics, Assignment Help, Ask Question on Economics, Get Answer, Expert's Help, Economics Discussions

Write discussion on Economics
Your posts are moderated
Related Questions
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) provides a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks

Why does a production possibilities frontier with increasing opportunity costs have a bowed-out shape?   The curve is bowed-out because some resources are better suited for the

Suppose that between January 2011 and January 2012 the total number of people employed and the unemployment rate both fell. Briefly explain how this is possible. [2 marks]

Review the most current results of FORTUNE Magazine's annual ranking of America's "100 Best Companies to Work For." Explore the website of at least three of the companies noted. De

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

C=100+0.75Yd How do i calculate marginal propensity to consume?

Please explain each of the following terms and explain how each is used in the standard model. 1. Iso value line's 2. Production possibilities frontier 3. Indifference curve. You w

Q. Describe about Monetary policy? By monetary policy we mean policy directed at controlling the money supply and interest rates. In most nations, central bank is responsible f

Was money a better store of value in the United States in the 1950s than it was in the 1970s? Why or why not? In which period would you have been willing to hold money? Which one w

Need answers for the questions (Chapters 10, 11 & 12) Please see attached questions. Thanks!