Use the marginal principle to explain why government mandated safety features in automobiles during the 1960s and 1970s resulted in an increase in collisions between automobiles and bicycles
What will be an ideal response?
The mandated safety features decreased the marginal cost of speed: People who wear seat belts suffer less severe injuries in a collision, so every additional unit of speed is less costly to the driver. Drivers felt more secure because they were better insulated from harm in the event of a collision, and so they drove faster. As a result, the number of collisions between cars and bicycles increased, meaning that a safer environment for drivers led to a more hazardous environment for bicyclists.
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When the price of NBA tickets is $25 each, 30,000 tickets are sold. After the price rises to $30 each, 20,000 tickets are sold. At the original price, the demand for NBA ticket is:
A. inelastic. B. elastic. C. perfectly elastic. D. unit elastic.
In 1860, ______________ was the top industry as ranked by value added
a. cotton goods b. boots and shoes c. men's clothing d. iron
The roles fulfilled by commercial banks and investment banks are:
A. not allowed to be done by the same bank. B. rarely done by the same bank. C. often done by the same bank. D. always done by the same bank.
Suppose a buyer hires an interpreter who charges $5 to negotiate a deal with a seller. The buyer's valuation of the good is $50 and the seller's opportunity cost is $35 . If the net benefit to the buyer is equal to the same received by the seller, what is the price agreed upon by the two parties?
a. $42 b. $40 c. $44 d. $38