1) Assume that the demand curve for an imported candy bar can be expressed as € PD = 4.60 − 0.0001Q, and the supply curve can be expressed as € PS = 0.2 + 0.0003Q. a) What is the price and quantity at which the market clears?
The price and quantity at which the market clears is $3.50 and 11,000 respectively. b) What is the value of the consumer surplus and the producer surplus in this market?
The consumer and producer surplus are $6,050 and $18,150 respectively. The overall benefit to society from producing and consuming candy bars is $24,200.
c) Imagine that a new factory opened up which could make the item much more cheaply. Would this affect the supply curve, demand curve, neither, or both? Write a new equation or set of equations that …show more content…
In a 2009 article written by Martin Weitzman in the journal The Review of Economics and Statistics, Weitzman interprets the economics of catastrophic climate change. In his study was based off of the implications of structural uncertainty for low probability economics and high impact catastrophes. His theoretical model finds that large disasters with moderate probabilities are likely to create high cost. In the Technological Forecasting and Social Change journal Richard Rosen attempts to address what “we” know about the economics of climate change. He finds that long-term economics of mitigating climate change cannot accurately determine the net cost and benefits, in which estimates are likely to create low cost.
The cause for the different interpretations of these studies is likely due to the variables they found significant for their models. Weitzman found that IAM results were accurate and based his model off of their assumptions, while Rosen found IAM results to be skewed. Rosen attempted to minimize the uncertainties when predicting net …show more content…
Geoengineering is the artificial manipulation of earth’s climate to offset environmental changes that are anthropogenically caused. The major positives of geoengineering would be cleaning up and restoring the atmosphere to safer levels of greenhouse gas that would ultimately minimize the negative effects of global warming. However, geoengineering could increase the effects of global warming by interrupting/amplifying the feedback effects of the carbon cycle. As well as allowing people to continue habits that produce high levels of greenhouse gases, with little consequences.
4) Think about the Sendel and Stavins papers. What do you think the strongest point Sendel makes is? Given that tradeable permits essentially allow companies to pay to pollute, how do you think Stavins would respond to Sendel? Explain your thoughts on balancing (or choosing between) “efficiency” and “fairness” in pollution trading
The price and quantity at which the market clears is $3.50 and 11,000 respectively. b) What is the value of the consumer surplus and the producer surplus in this market?
The consumer and producer surplus are $6,050 and $18,150 respectively. The overall benefit to society from producing and consuming candy bars is $24,200.
c) Imagine that a new factory opened up which could make the item much more cheaply. Would this affect the supply curve, demand curve, neither, or both? Write a new equation or set of equations that …show more content…
In a 2009 article written by Martin Weitzman in the journal The Review of Economics and Statistics, Weitzman interprets the economics of catastrophic climate change. In his study was based off of the implications of structural uncertainty for low probability economics and high impact catastrophes. His theoretical model finds that large disasters with moderate probabilities are likely to create high cost. In the Technological Forecasting and Social Change journal Richard Rosen attempts to address what “we” know about the economics of climate change. He finds that long-term economics of mitigating climate change cannot accurately determine the net cost and benefits, in which estimates are likely to create low cost.
The cause for the different interpretations of these studies is likely due to the variables they found significant for their models. Weitzman found that IAM results were accurate and based his model off of their assumptions, while Rosen found IAM results to be skewed. Rosen attempted to minimize the uncertainties when predicting net …show more content…
Geoengineering is the artificial manipulation of earth’s climate to offset environmental changes that are anthropogenically caused. The major positives of geoengineering would be cleaning up and restoring the atmosphere to safer levels of greenhouse gas that would ultimately minimize the negative effects of global warming. However, geoengineering could increase the effects of global warming by interrupting/amplifying the feedback effects of the carbon cycle. As well as allowing people to continue habits that produce high levels of greenhouse gases, with little consequences.
4) Think about the Sendel and Stavins papers. What do you think the strongest point Sendel makes is? Given that tradeable permits essentially allow companies to pay to pollute, how do you think Stavins would respond to Sendel? Explain your thoughts on balancing (or choosing between) “efficiency” and “fairness” in pollution trading