those questions need to answer them by comparative statics
Show how a fixed charge combined with a lower per-unit rate favours large buyers relative to smaller buyers. Identifuy the deadweight loss that results
Construct a supply and demand model for the oil industry in which there is a capacity constraint so that the supply curve becomes vertical after a point. Show how an accelerating economy (one with with growing demand) can lead to oil prices shooting up.
Next, an example with more than one market. Using the example from question 2, show how an increase in demand for the product of an OIL-USING industry increases demand for OIL, pushing up oil prices and increasing the cost of production (shown as a shift in the supply curve in the oil using industry. This is an eample on showing cross-product effects.
Construct an example of a market for a product that causes pollution and introduce the external cost. Then add a Pigovian tax to correct the distortion. Remember to expain with care.
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