Ask Question, Ask an Expert


Ask Microeconomics Expert

In a study published in 1980, B. B. Gibson estimated the following price and income elasticities of demand for six types of public goods:

State Activity Price Income
Elasticity Elasticity
Aid to needy people -0.83 0.26
Pollution control -0.99 0.77
Colleges and universities -0.87 0.92
Elementary school aid -1.16 1.14
Parks and recreational areas -1.02 1.06
Highway construction and -1.09 0.99

(a) Do these public goods conform to the law of demand? For which public goods is demand price elastic?

(b) What types of goods are these public goods?

(c) If the price or cost of college and university education increased by 10 percent and, at the same time, incomes also increased by 10 percent, what would be the change in the demand for college and university education?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M946690

Have any Question? 

Related Questions in Microeconomics

How would a low-cost price leader enforce its leadership

How would a low-cost price leader enforce its leadership through implied threats to a rival? How does a firm become a "low cost" price leader? Discuss the specific type of market structure that implied threat strategy ca ...

Problemdescribe some interaction your company has with

Problem Describe some interaction your company has with another entity (firms producing complementary or substitute products, upstream suppliers, or down-stream customers), or between internal divisions within your firm ...

Economics problem set-question 1 sometimes goods are

Economics Problem Set- QUESTION 1: Sometimes goods are rationed, so people cannot buy as much as they want at the announced price. A good example is Super bowl tickets, which are sold at below market price. Suppose that ...

Assignment global business today - the hofstede studyrefer

Assignment: Global Business Today - The Hofstede Study Refer to Hofstede model in Chapter 4 of the textbook and the Global Business Today Interaction located below, and complete this assignment. Note: You must have a Fla ...

Assignment1in homework 1 we solved the equilibrium in the

Assignment: 1. In homework 1 we solved the equilibrium in the beer market represented by the following supply and demand functions: Q d = 20 - 4p +2p w + 3Y + 15HOLIDAY Q s = -4 + 26p - 2p g - 1p t Q = pints of beer (in ...

Human relations amp workforce planningpharmanetixfor your

Human Relations & Workforce Planning PHARMANETIX For your final project, you need to write a 10-15 page proposal to me, the Chairman of the Board for Pharmanetix. Here are some helpful hints when writing this proposal: 1 ...

Assignmentlearning activity 1 - theme 1a discuss the

Assignment Learning Activity 1 - Theme 1 a.) Discuss the classifications of organizational theory and their precepts and what can we learn from its history? b.) For businesses to succeed they must maintain a competitive ...

Suppose the consumerworker values two things a consumption

Suppose the consumer/worker values two things: a consumption good C and leisure L. Suppose that there are 24 hours in a day and the consumer/worker has a utility function U (C, L) = C^0.5 + L ^0.5 The price of consumptio ...

Success and failurethink about the causes of success and

Success and Failure Think about the causes of success and failure for particular movements. What causes some to become widely appealing and have major impacts on change? What causes others (regardless of the validity of ...

Assignment submit research paper draftthe research paper on

Assignment: Submit Research Paper Draft The research paper on the toll that alternative forms of tobacco have on the supply and demand of the tobacco industry. This would include e-vapors and e-cigs. Finding out if these ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate