Essay
Wearing a light long-sleeved sweater adds about 2 degrees of warmth to the wearer and allows such individuals to keep their homes at 2 degrees lower temperature. Such sweaters cost approximately $20, or three for $60. The 2-degree decrease in heat can save $200 a year in heating bills.
(a) Assuming that the government is committed to saving electricity, should it require people to wear such sweaters and keep their homes 2 degrees cooler?
(b) What are two alternatives to this regulation?
(c) If it is cheaper to keep warm with sweaters than with furnaces, why don't people voluntarily wear more sweaters?
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(a) Direct regulation does not achieve t...View Answer
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