Economics Question...Please Help!!!?

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midnite maniac

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In each of the following cases, explain whether you think the situation is efficient or not. If it is not efficient, why not? What actions would make the situation efficient?

a. Electricity is included in the rent at your dorm. Some residents in your dorm leave lights, computers, and appliances on when they are not in their rooms.

b. Although they cost the same amount to prepare, the cafeteria in your dorm consistently provides too many dishes that diners don’t like, such as tofu casserole, and too few dishes that diners do like, such as roast turkey with dressing.

c. The enrollment for a particular course exceeds the spaces available. Some students who need to take this course to complete their major are unable to get a space while others who are taking it as an elective do get a space.

I would really appreciate it if someone can please help me on this....I been trying to do this for a few days now, and now I am tired and need to get it done.....I figured I would ask for help.....Thank you everyone!
 
All are inefficient. They do not equate supply with demand.

a. Charging students for electricity separately from rent would be more efficient. Residents tend to think of electricity as being free because they pay the same amount of rent regardless of use. So they use more than they would if they had to pay for usage. This actually raises the cost for everyone, but not in proportion to usage. If they paid for usage, they would use what they were willing to pay for, equating demand with supply.

b. Chances are, when the cafeteria serves something that diners don't like, many of the diners will choose to go to a restaurant instead. They would be paying for cafeteria food that they don't eat. The cafeteria should remedy this by noting which foods go uneaten, and serve less of them, and which foods they run out of, and serve more of them.

c. This is a shortage situation. One possible solution would be to charge students extra for this particular course. Increasing the cost to the point where enrollment matches available spaces would be efficient. Those who need the course would be more likely to pay the extra charge for taking it. If the school doesn't have tuition rates for individual courses, and nobody is willing to change that policy, another option would be to make it a prerequisite that anybody taking the course is majoring in whatever the course is required for. This would exclude those who want to take the course as an elective. This solution would not be as efficient as the first one because it may eliminate some who would be willing to pay the extra. But it may be more practical.
 
All are inefficient. They do not equate supply with demand.

a. Charging students for electricity separately from rent would be more efficient. Residents tend to think of electricity as being free because they pay the same amount of rent regardless of use. So they use more than they would if they had to pay for usage. This actually raises the cost for everyone, but not in proportion to usage. If they paid for usage, they would use what they were willing to pay for, equating demand with supply.

b. Chances are, when the cafeteria serves something that diners don't like, many of the diners will choose to go to a restaurant instead. They would be paying for cafeteria food that they don't eat. The cafeteria should remedy this by noting which foods go uneaten, and serve less of them, and which foods they run out of, and serve more of them.

c. This is a shortage situation. One possible solution would be to charge students extra for this particular course. Increasing the cost to the point where enrollment matches available spaces would be efficient. Those who need the course would be more likely to pay the extra charge for taking it. If the school doesn't have tuition rates for individual courses, and nobody is willing to change that policy, another option would be to make it a prerequisite that anybody taking the course is majoring in whatever the course is required for. This would exclude those who want to take the course as an elective. This solution would not be as efficient as the first one because it may eliminate some who would be willing to pay the extra. But it may be more practical.
 
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