Externalities and Property Rights
There was a little girl who had a little curl
Right in the middle of her forehead;
And when she was good she was very, very good,
But when she was bad she was horrid.
Henry Wadsworth Longfellow
Econ 1010,5e'ctian A03 NAME: L - 1
Dr. Janice Compton Student Number
QUIZB TOTAL: 14 marks
ANSWER ALL QUESTIONS.
1. (10 marks): The followinginformation outlines the short run situation facing a perfectly com petitive
Economic Surplus and Exchange
Why the Government should not
get involved in the market.
Outline of Lecture
Consumer and Producer Surplus
Surplus Maximizing Output and
1. Price Floor (10 points). Consider the market for unskilled labour in Naboo (a fictional place).
Labour demand and labour supply are given by the following equations (where W is wage (price
in dollars) and L is labour (quantity in millions):
W = 10 2.5L