In an attempt to reduce poaching of elephant ivory tusks, officials in Kenya burned illegally gathered ivory. Using your understanding of shifts in supply and demand, will this turn out to be a helpful or hurtful move on the Kenyan government's part?
The burning of the ivory causes the supply curve of ivory to shift to the left, thereby increasing the price of ivory in the marketplace. This policy may have the opposite effect from the one intended. Higher ivory prices will likely induce more poaching to occur by making it more profitable.
You might also like to view...
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
If both the marginal social benefit of abatement function and the marginal social benefit of abatement function shifted up. a. The greater would be the efficient level of pollution abatement
b. The smaller would be the efficient level of pollution abatement. c. There would be no change in the efficient level of pollution abatement. d. We do not know whether the efficient level of pollution abatement would rise or fall.
Which of the following operate under a fixed-rate unified currency system?
a. the 12 countries of the European Monetary Union b. the 50 states of the United States c. Hong Kong, Panama, and the United States d. all of the above
A monopolist will ________ if marginal revenue is negative.
A. increase production B. not produce C. maintain its current production level D. shut down