Scenario 10-2 the Demand Curve for Restored Historic Buildings Slopes Downward and Downward

question 328

Essay

Scenario 10-2
The demand curve for restored historic buildings slopes downward and the supply curve for restored historic buildings slopes upward. The production of the 50^th restored historic building entails the following:
• a private cost of $800,000;
• a private value of $650,000;
• a social value of $800,000.
-Refer to Scenario 10-2. Could the government impose a tax or provide a subsidy to move the market to the social optimum? If your answer is "Yes," should it be a tax or should it be a subsidy?

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Definitions:

Crimes

Acts that violate legal statutes and are punishable by the state or other authority.

Gains

Increases or improvements in various contexts, such as health, wealth, knowledge, or efficiency.

Imprisoned

The state of being held in a prison or being confined as a form of punishment.

Conflict View

A perspective in sociology that sees social life as a competition, and focuses on the distribution of resources, power, and inequality.