No Dogs Allowed Case Study

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No dogs allowed case 1. What economic question(s) does this case require the town to ask? (2 points) Is it worth it to build the dog park? 2. List the possible resources that the town would need to construct and maintain the park. (2 points) The total cost it would take to clear the trees, how much the added resident fee for a membership and how much the local pet store is willing to donate. 3. What town resource(s) are scarce? (1 points) The scarce recourse in the town is land. 4. Who will be the consumers using this public good? (2 points) The consumers using the park are families and individuals with dogs. 5. What is the opportunity cost of building this park? Explain. (5 points) The community may become unbalanced because…show more content…
selling the land to real estate developers to build homes. By selling the land the schools will be over populated, but you will have more money from the real estate developers. 7. What, if any, market failures might exist in this town? Explain. (3 points) By building the dog accessible park you won’t have the money to renovate the school. 8. Create a chart that identifies the positive and negative externalities of building the park. Explain the effect of each externality. (Hint: You may use the charts on pp. 64−65 as a guideline.) (6 points) Step 1- positive. Proposal: community wants a dog park. Benefit: people will have a place to bring their dogs with family. Cost: won’t have extra housing and not as much potential money. Step 2- negative. Proposal: build a neighborhood. Benefit: more families will come to community, and will have money to build a new school. Cost: won’t have a place to bring dogs and families. Step 3- the creation of the park and its externalities. Positive: recreation, a place to bring your dog, a safe environment. Negative: not as much money is gained, not as much housing, won’t have recourses for a new school. 9. How could the town government counteract the negative externalities? (3
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