Suppose Anyone with a Driver's License Is Capable of Supplying

question 84

Essay

Suppose anyone with a driver's license is capable of supplying one trip from the airport to the downtown business center on any given day.The long-run supply curve of such trips is horizontal at p = $50,which is the average cost of such trips.Suppose daily demand is Q = 1000 - 10p.Calculate the change in consumer surplus,producer surplus and social welfare if the city government requires those people supplying such trips to possess a special license,and the government will issue only 300 licenses.

---

Definitions:

Affluent Members

Individuals or groups possessing a significantly higher than average level of wealth, income, or material possessions.

Policy Advocacy

The act of actively promoting and pushing for changes in public policy to address specific issues or causes.

Political Rationale

The reasoning or logic behind political actions or policies, often considered in terms of strategic advantages or goals.

Analytic Rationale

The logical reasoning or analysis used to understand or justify decisions, policies, or strategies, often involving systematic examination of data or facts.