Paul Owns a Home on the Top of a Hill

question 51

Multiple Choice

Paul owns a home on the top of a hill and enjoys an unobstructed view of a large wooded area.The view was a large factor in his decision to buy the house and Paul values his view at $5,000 per month.Sid purchases the undeveloped wooded area with plans to build a retail shopping centre.Sid expects to earn $10,000 a month from the shopping centre,which is $3,000 more than his next best alternative.
-Refer to the information above.The most effective way for Paul to ensure his view would be preserved would have been to

• A) lobby for environmental restrictions.
• B) plead with Sid not to develop the land.
• C) offer to pay Sid not to develop the land.
• D) purchase the land and acquire the private property rights to the view.
• E) repeatedly testify before the city council about future traffic congestion from the shopping centre.

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Definitions:

Demand

The level of demand for products or services that purchasers can and are willing to pay for at numerous prices over a designated period.

Substitutes

Goods or services that can be used in place of each other, with the capability of satisfying similar consumer needs or desires.

Coors

A well-known brewing company based in Golden, Colorado that produces a wide range of beers.

Budweiser

A popular American beer brand known for its lager.