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Environmental economics : an introduction

Barry C Field, Martha k Field Economia ambiental

Chapter 3

Benefits and Costs, Supply and Demand - all with Video Answers

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Chapter Questions

02:12

Problem 1

Use the logic of willingness to pay to interpret the statement "I like clean air more than you do."

Matthew Biollo
Matthew Biollo
Numerade Educator
10:50

Problem 2

Below is the marginal willingness to pay of a consumer for organic apples.
$$
\begin{array}{cc}
\hline \begin{array}{c}
\text { Consumption Level } \\
\text { (apples per week, lbs.) }
\end{array} & \begin{array}{c}
\text { Marginal } \\
\text { Willingness to Pay }
\end{array} \\
\hline 0 & 5.00 \\
1 & 4.00 \\
2 & 3.20 \\
3 & 2.60 \\
4 & 2.20 \\
5 & 1.80 \\
6 & 1.50 \\
\hline
\end{array}
$$
a. What is this individual's total willingness to pay at a consumption level of 4 apples?
b. If the price of organic apples is $$\$ 2.40$$, how many apples would this person consume?

Samit Deshmukh
Samit Deshmukh
Numerade Educator

Problem 3

Below are the marginal willingness-to-pay schedules for organic apples for two individuals.
(TABLE CAN'T COPY)
Construct the aggregate marginal willingness-to-pay (the demand) curve for this group of two people.

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Problem 4

What are the advantages and disadvantages of using willingness to pay as a measure of value? What are some alternatives?

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Problem 5

Figure 3.10 illustrates the derivation of an industry supply curve under competitive conditions where each firm receives the same price for its output. What is the relationship of this procedure to the equimarginal principle discussed earlier in the chapter?

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01:52

Problem 6

Consider the marginal cost curve associated with cleaning your dorm room. Label the vertical axis "time" and the horizontal axis "percent clean." What would this marginal cost curve look like?

Xiaomin Bian
Xiaomin Bian
Numerade Educator
01:28

Problem 7

Somebody invents a small machine that electrostatically is able to remove dust from rooms very quickly. What does this do to the marginal cost curve depicted in question 6 ?

Vishal Parmar
Vishal Parmar
Numerade Educator