Question 17-21 refer to the following graph   Now suppose the income increases to $48, the price of pizza is $2, and the price of soda is $2. The increase in pizza consumption (when compared to question 19) is  

For questions 10-13, the following graph describes the market for train tickets.   Suppose that there is a $6 positive externality for the market. What should the government do to ensure the quantity transacted is optimal?

Question 14-16 considers the market for milk. Suppose there is a 25% increase in income, what happens to the quantity demanded of milk?

Suppose the government imposes a price floor at B. Consumer surplus with the price floor equals the area defined by which points?

What is the purpose of tradable allowances in the area of products that produce externalities?

The proposition that private parties with clearly defined property rights and low transaction costs can resolve externalities problems on their own is called the:

An example of a private good would be:

An example of a common resource would be:

You will need to click on the pdf document below to view the Chapter 13, 14 Test; there are 22 questions for this version of the test. Write the problems down on your own paper showing appropriate work. Submit Canvas Quiz and attach your work to an email to send to me for grading.  Thank you for being mature and understanding!  Chapter 13 and 14 RE-TEST.pdf

Please make sure you have completed the following items before starting the exam. Have read the Exam Advise Announcement.Reviewed the Exam Do’s and Don’ts. Do not have a cell phone in close proximity or any other electronics that could be considered cheating. Cleared desk/table, are in a well lit room, and you have recorded your environment properly. Points will be deducted if instructions are not followed correctly. Academic dishonesty will be penalized with an F in the exam and will be reported to the college. Any student caught cheating a second time will receive an F for the course and be reported to the college.To prepare for this exam, make sure you have reviewed all 3 attempts for Ch. 10, 11, and 12 Quizzes. Understanding those questions will help you succeed in this exam.