It Is the Custom for Paper Mills Located Alongside the Layzee

question 186

Multiple Choice

It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment.If the government intervenes and corrects the externality in the situation described, we would expect

• A)the supply of the output from the hydroelectric power plants to decrease.
• B)the supply of the output from the hydroelectric power plants to increase.
• C)the demand for the output from the hydroelectric power plants to decrease.
• D)the demand for the output from the hydroelectric power plants to increase.

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Definitions:

Behavioural Uniformities

Consistent and predictable patterns of behavior displayed by individuals across different situations or cultures.

Group Membership

The association or identification of an individual with a group, based on shared characteristics, goals, or interests.

Social Attraction

Liking for someone based on common group membership and determined by the person’s prototypicality of the group.

Hogg's Model

A social identity theory related model that explains how perceived uncertainty in groups can lead to stronger identification with and conformity to group norms.