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...
Constant returns to scale occur when the firm's long-run
a. total costs are constant as output increases. b. average total costs are constant as output increases. c. average cost curve is falling as output increases. d. average cost curve is rising as output increases.
When a falloff in usage of a product by some consumers causes others to stop purchasing the item there is
A) a dominant effect. B) a negative-sum game. C) positive market feedback. D) negative market feedback.