| Principles of Macroeconomics (Eco 200-800) | Ranjit Dighe |
| Solutions will be posted or distributed by Fri., Feb. 18, 2000 | SUNY-Oswego |
A. The city of Oswego recently considered
changing its water-fees policy from a flat-fee policy under which home
owners pay a fixed yearly fee to a new system by which people would be
charged for their actual usage of water (e.g., by the gallon) in their
homes.
-- 1. Use economic analysis to explain
how a typical person's water usage would be affected if the city adopted
the new system.
-- 2. Use economic analysis to explain
why your answer would be the same regardless of whether people end up paying
more or paying less for their total water usage under the new system.
B. Case & Fair, 5th ed., Chapter 1: #2, 3
C. Chapter 1 Appendix: #2
D. Chapter 2: #1
E. Chapter 3: #8, 9, 10, 13
F. Chapter 4: #5, 7