The Tragedy of the Commons for Sheep Grazing on Common

question 418

Multiple Choice

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except

• A)assigning land property rights.
• B)auctioning off sheep-grazing permits.
• C)taxing sheep flocks.
• D)subsidizing sheep flocks.

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Definitions:

Quantity Demanded

Quantity demanded is the total amount of a good or service that consumers are willing to purchase at a particular price over a specified period.

Consumer Tastes

Preferences and inclinations of consumers towards certain products, brands, or services, often influenced by cultural, social, and personal factors.

Price-inelastic

Describes a market situation where the quantity demanded of a product does not change significantly when its price changes.

Price-sensitive

Refers to the degree to which the demand for a product or service is affected by changes in its price.