Scenario: Vacant houses, foreclosed or abandoned, are typically boarded up with plywood that many people consider unsightly and likely to invite vandalism. An alternative is clear plastic (polycarbonate) panels. The figure below shows the demand and the supply of polycarbonate panels used for boarding up houses in a hypothetical town. Suppose that there are 140 houses that are vacant and the town council makes it illegal to use plywood to board them up, leaving only polycarbonate panels as an alternative. To answer some of the questions below, it will be useful to find the equations of the three lines in the figure.

-Refer to the scenario above.The council's action is an example of ________.

Question

Scenario: Vacant houses, foreclosed or abandoned, are typically boarded up with plywood that many people consider unsightly and likely to invite vandalism. An alternative is clear plastic (polycarbonate) panels. The figure below shows the demand and the supply of polycarbonate panels used for boarding up houses in a hypothetical town. Suppose that there are 140 houses that are vacant and the town council makes it illegal to use plywood to board them up, leaving only polycarbonate panels as an alternative. To answer some of the questions below, it will be useful to find the equations of the three lines in the figure.
 
-Refer to the scenario above.The council's action is an example of ________.

Quizplus · Accepted Answer

The council's action is an example of a command-and-control policy, as they are mandating the use of a specific material (polycarbonate panels) and prohibiting the use of another (plywood) in boarding up vacant houses. This is a form of government regulation that does not rely on market-based mechanisms.

Scenario: Vacant Houses, Foreclosed or Abandoned, Are Typically Boarded Up