Tutor profile: Thomas W.
Subject: Human Geography
With climate change becoming an ever larger threat to the planet, where are some places that will be affected the most? Why?
The first places to consider with the climate changing are those along coastlines. With climate change causing rising temperatures, the icecaps are melting leading to rising sea levels. These rising sea levels are going to affect hundreds of millions of people that live along coasts, forcing them to move. Another group that will be affected are those living in already warm places, with rising temperatures worsening conditions. Finally, people inland are going to be affected because of the mass migration of people coming from coastal and warm places trying to find refuge from the environment.
Suppose a city has an equilibrium fish market where the quantity of fish being supplied and demanded are both 100. Now imagine that the government places a quota on the city that only allows for 80 fish to be caught and sold. What happens to the equilibrium price and quantity?
If there is a quota of 80 fish, that means that there are less fish coming into the market than there would be at equilibrium. Since the supply is limited, our new quantity decreases to 80. Even though the quantity supplied has decreased, the quantity demanded has remained the same. That means that now the prices will rise for fish because there are more people that want to buy it than people that can sell it.
Suppose Blake wants to buy a new bicycle. His budget for buying a bicycle is anywhere up to $300. The shop that he is looking at has bicycles for sale for $200 that he really likes. What is his consumer surplus in purchasing a $200 bicycle?
To figure out his consumer surplus, you must take his Willingness to Pay (WTP) and subtract the price he paid (Price). In this example, Blake was willing to purchase a new bicycle for $300, but the shop was selling them for $200. Using the formula of WTP-Price=Consumer Surplus, we arrive at this answer 300-200=100. Blake has $100 of consumer surplus.