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.

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Definitions:

Negative Emotions

Feelings that are generally considered to be undesirable and unpleasant, such as sadness, anger, fear, and jealousy.

Conscientiousness

A personality trait characterized by diligence, carefulness, thoroughness, self-discipline, and thoughtfulness in carrying out tasks.

Health Outcomes

Measures used to evaluate the effects of healthcare interventions or health-related behaviors on patient health status, including mortality rates, quality of life, and disease incidence.

Social Network

A structured set of relationships among individuals or organizations that can include social, professional, or familial connections, facilitated by communication and interaction.