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The result (Vietnamese) 2:reduce pollution effectively. How tothe methods of targeting the companies needmake bigger cuts?7. Multiple identical residents of Whoville lovedrink Zlurp. Each resident has the followingwilling to pay for the tasty refreshments:The first bottles $ 5the second bottle 4three bottles 3the fourth bottle 2Thursday, 1 bottlemore bottles 0a. Zlurp production cost is $ 1.50, andthe vendors compete to sell at this price.(The horizontal supply line.) How manyWhovillian each bottle will consume? What'sconsumer surplus of each is?b. production of Zlurp creates pollution. Eachthe bottle has a cost of $ 1. Taken thisadditional costs into account, the total number is whatredundancies each of the allocation youdescribed in part (a)?c. Cindy Lou Who, one of the residents ofWhoville, her decision to reduce herZlurp consumption by a bottle. Whathappens to the well-being of its consumers (Cindyexcess of cost of the her pollutionexperience)? How to get Cindy's decisionaffect the total surplus in Whoville?d. Mayor Grinch imposed taxes $ 1 Zlurp.consumption per person was the what now?As the consumer surplus, external costs,the Government's revenue, and total surplus perinhabitants.e. Based on your calculations, you willsupport the policies of the Mayor? Why and why not?8. Ringo likes to play rock 'n' roll inhigh volume. Luciano in love and hate operaRock ' n ' roll. Unfortunately, they are next doorneighbors in an apartment building withwalls as thin as paper.a. External factors: what is here?b. what command and control policies can bethe landlord imposes? Can such a policy guidea result is not effective?c. assume the landlord allows the tenant dowhatever they want to. According To CoaseLi, how Ringo and Luciano canachieving an effective outcome on its own?
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