Although Digital Storage Costs Have Declined Sharply in the Past

question 18

Multiple Choice

Although digital storage costs have declined sharply in the past few years, many universities and companies still have limited storage space for email messages and impose a fixed limit on the amount of file storage space per user. May we view this as a common property resource problem, and do the fixed limits resolve the problem?

• A) Yes, the storage space used by one person is not available to another person, and the storage limit is a type of quota that allocates the property rights to the storage space.
• B) Yes, the storage space used by one person is not available to another person, and the storage limit represents a form of single-person ownership that resolves the common property resource problem.
• C) No, one person's use of the storage space does not have an impact on other people, so this is not a common property resource problem.
• D) This is an example of a common property resource problem, but the fixed limits on storage space do not resolve the problem.

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Definitions:

Price

The expense involved in securing a product or service.

Demand Curve

The Demand Curve is a graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Quantity Demanded

The level of product or service that buyers intend to purchase at various prices.

Increase

A situation where there is a rise in quantity, size, number, value, or intensity of a particular variable or condition.