Sample_Writing_Assignment_01

Sample_Writing_Assignment_01 - Econ1001 A/B Intro. To Econ....

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Econ1001 A/B Intro. To Econ. (Micro) A Sample of Writing Assignment 1 Question 3. Original Version: 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. New Version: Now suppose that the authority of the “tag” system still charges a fixed weekly fee of $6 in addition to the $2 charged for each tag. But they want to reimburse the revenues from selling the tags to the households. There are three alternative plans. The first plan proposes to reimburse the total revenues evenly among the households at the end of each year. The second plan would subsidize each household with a fixed amount $4 each week. The last plan would reimburse the amount each household has paid at the end of the year. Compared to a “tag” system without reimburse plan, do you think the city would have higher or lower quantity of garbage collected under these different plans? Explain briefly. Answer:
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Sample_Writing_Assignment_01 - Econ1001 A/B Intro. To Econ....

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