Since Restored Historic Buildings Convey a Positive Externality, Local Governments

question 246

Multiple Choice

Since restored historic buildings convey a positive externality, local governments may choose to

• A)regulate the demolition of them.
• B)provide tax breaks to owners who restore them.
• C)increase property taxes in historic areas.
• D)Both a and b are correct.

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Definitions:

Price Elasticity

An indicator of the responsiveness of the quantity of a good demanded to its price variations, showing how sensitive the buyers are to changes in price.

Price Elasticity

An assessment of the responsiveness of product demand to changes in its pricing.

Demand Coefficient

A parameter in demand analysis that measures the sensitivity of the quantity demanded of a good to changes in its price or other factors.

Quantity Demanded

The complete quantity of a product or service that customers are prepared and able to buy at a given price.