E202PracticeExam1.1

E202PracticeExam1.1 - Practice Exam One Name _ Chapter 1 1....

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Practice Exam One Name _____________________ Chapter 1 1. Residents of your city are charged a fixed weekly fee of $6 for garbage collection. They are allowed to put out as many cans as they wish. The average household disposes of three cans of garbage per week under this plan. Now suppose that your city changes to a “tag” system. Each can of refuse to be collected must have a tag affixed to it. The tags cost $2 each and are not reusable. What effect do you think the introduction of the tag system will have on the total quantity of garbage collected in your city? Explain briefly. 2. A local restaurant offers an all-you-can-eat lunch buffet for $5. To celebrate its tenth year in business, the restaurant lets every tenth customer have the buffet for free.
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.

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