Full Microeconomics 9Th Edition Michael Parkin Solutions Manual Online PDF All Chapter

Microeconomics 9th Edition Michael
Parkin Solutions Manual

Visit to download the full and correct content document: https://testbankdeal.com/dow
nload/microeconomics-9th-edition-michael-parkin-solutions-manual/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
Microeconomics 12th Edition Michael Parkin Solutions

Manual
https://testbankdeal.com/product/microeconomics-12th-edition-
michael-parkin-solutions-manual/
Microeconomics 11th Edition Michael Parkin Solutions

Manual
Microeconomics 11th Edition Michael Parkin Test Bank
michael-parkin-test-bank/
Microeconomics 12th Edition Michael Parkin Test Bank
michael-parkin-test-bank/
Macroeconomics 12th Edition Michael Parkin Solutions
Manual
https://testbankdeal.com/product/macroeconomics-12th-edition-
Economics 11th Edition Michael Parkin Solutions Manual
https://testbankdeal.com/product/economics-11th-edition-michael-
parkin-solutions-manual/
Economics 12th Edition Michael Parkin Solutions Manual
https://testbankdeal.com/product/economics-12th-edition-michael-
Microeconomics 9th Edition Parkin Test Bank
parkin-test-bank/
Microeconomics 13th Edition Parkin Solutions Manual
C h a p t e r
6 GOVERNMENT
ACTIONS IN
MARKETS
Answers to the Review Quizzes

Page 132
1. What is a rent ceiling and what are its effects if it is set above the equilibrium rent?
A rent ceiling is a specific example of a price ceiling. A rent ceiling is a government imposed regulation
that makes it illegal to charge a rent higher than a specified level. If a rent ceiling is set above the
equilibrium rent, it has no effect because it does not make the equilibrium rent illegal.
2. What are the effects of a rent ceiling that is set below the equilibrium rent?
If the rent ceiling is below the equilibrium rent, the quantity of housing units demanded by renters exceeds
the quantity supplied by landlords. Since landlords are not forced to supply more units than the supply
curve would indicate for the rent ceiling price, the quantity of housing units actually rented equals the
quantity supplied, rather than the quantity demanded. This causes a shortage in the rental housing market.
3. How are scarce housing resources allocated when a rent ceiling is in place?
With an effective rent ceiling, some means for allocation of housing units (other than by price) becomes
necessary. The shortage of housing units created by the rent ceiling increases search activity, which
increases the renters’ opportunity cost. Black markets also develop, where housing units are allocated at a
rent higher than the regulated rent. Over time, those who have lived a long time in the rent-controlled area
will benefit, since they will be the households that have acquired housing at the lower price, despite their
income-levels. Newcomers will be at a disadvantage.
4. Why does a rent ceiling create an inefficient and unfair outcome in the housing market?
A rent ceilings creates inefficiency because at the quantity of apartments that are rented, the marginal social
benefit exceeds the marginal social cost. Rent ceilings are unfair under the “fair rules” approach because
rent ceilings prevent voluntary transactions. Rent ceilings are unfair under the “fair results” approach
because there is no assurance that apartments go to those with lower incomes. Indeed, rent ceilings lead to
discrimination, which is perhaps the antithesis to fairness.
Page 135
1. What is a minimum wage and what are its effects if it is set above the equilibrium wage?
A minimum wage is a price floor applied to the labor market. A minimum wage is a government imposed
regulation that makes it illegal to charge (or pay) a wage rate lower than a specified level.
2. What are the effects of a minimum wage set below the equilibrium wage?
If the minimum wage is set below the equilibrium wage, then the law has no impact on the labor market
equilibrium wage and quantity.
100 CHAPTER 6
3. Explain how scarce jobs are allocated when a minimum wage is in place.
If a minimum wage is set above the equilibrium wage, the ability of the competitive market to allocate
resources is thwarted and other means must be used. Sometimes the method used is first-come, first-served
so that those who are first in line to apply for openings are given the jobs. Other times discrimination is
used so that those from favored groups are allocated the jobs.
4. Explain why a minimum wage creates an inefficient allocation of labor resources.
A competitive labor market allowed to reach its equilibrium creates an efficient allocation of resources. At
the equilibrium, the amount of employment is such that the marginal social cost of labor to workers equals
the marginal social benefit of labor to firms. A minimum wage set above the equilibrium wage rate creates
a surplus of labor—the quantity of labor supplied exceeds the quantity of labor demanded. The minimum
wage reduces employment so that it is less than the efficient amount.
5. Explain why a minimum wage is unfair.
Workers who receive wage hikes and retain their jobs gain from the minimum wage but workers who lose
their jobs and workers who must extensively search for a job lose. Those who keep (or find) jobs are not
necessarily the least well off, so the minimum wage fails the fair results approach to fairness. And the
minimum wage also fails the fair rules approach to fairness because the minimum wage blocks voluntary
transactions that otherwise would occur.
Page 140
1. How does the elasticity of demand influence the effect of a tax on the price buyers pay, the
price sellers receive, the quantity bought, the tax revenue, and the deadweight loss?
The more elastic the demand for a given supply: i) the smaller the increase in the price paid by the buyers;
ii) the greater the decrease in the price received by the sellers; iii) the smaller the quantity bought; iv) the
smaller the tax revenue; and, v) the larger the deadweight loss.
2. How does the elasticity of supply influence the effect of a tax on the price buyers pay, the price
sellers receive, the quantity bought, the tax revenue, and the deadweight loss?
The more elastic the supply for a given demand: i) the larger the increase in the price paid by the buyers;
ii) the smaller the decrease in the price received by the sellers; iii) the smaller the quantity bought; iv) the
smaller the tax revenue; and v) the larger the deadweight loss.
3. Why is a tax inefficient?
The imposition of a tax on a market causes a wedge to be driven between the price received by the seller
and the price paid by the buyer. This causes the marginal benefit of the last unit sold to be higher than its
marginal cost, and the market will under-produce the good or service being taxed. If more of the good or
service were produced, the marginal benefit gained would be greater than the marginal cost incurred, and
the net benefit to society would increase.
4. When would a tax be efficient?
A tax is efficient, that is, creates no deadweight loss, when demand is perfectly inelastic or supply is
perfectly inelastic. In both these cases a tax does not change the quantity produced and so creates no
deadweight loss.
5. What are the two principles of fairness that are applied to systems?
The two principles of fairness are the benefits principles and the ability-to-pay principle. The benefits
principle asserts that people should pay taxes equal to the benefits they receive from the government
provided services. The ability-to-pay principle asserts that people should pay taxes according to how easily
the they can bear the burden of the taxes.
GOVERNMENT ACTIONS IN MARKETS 101
Page 143
1. Summarize the effects of a production quota on the market price and the quantity produced.
A production quota set below the equilibrium quantity raises the price and decreases the quantity.
2. Explain why a production quota is inefficient.
A production quota is inefficient because it decreases production. As a result the marginal benefit of the
last unit produced exceeds the marginal cost. Because the marginal benefit exceeds the marginal cost, there
is a deadweight loss.
3. Explain why a voluntary production quota is difficult to operate.
A voluntary quota is difficult to operate because a quota results in a massive incentive to “cheat” on the
quota by increasing production. A quota decreases the quantity produced. By decreasing the quantity
produced, a quota raises the price and reduces the marginal cost of the last unit produced. Because the
price exceeds the marginal cost, producers have an incentive to increase their production (beyond the
quota amount) to boost their profit.
4. Summarize the effects of a subsidy on the market price and the quantity produced.
A subsidy increases the price received by sellers, shifts the supply curve rightward, and places a wedge
between the marginal benefit and marginal cost to society of producing the good. The subsidy creates a
deadweight loss, a higher equilibrium quantity sold, over-production, and a lower price paid by the
consumers. The subsidy increases farm revenues to all farmers.
5. Explain why a subsidy is inefficient.
A subsidy creates inefficiency because a subsidy leads to a lower price and increased production. Marginal
benefit equals the price and so the lower price signals that the marginal benefit falls. And the increased
production means that the marginal cost of production rises. So at the level of production with a subsidy,
the marginal benefit is less than the marginal cost and inefficiency is created.
Page 145
1. How does the imposition of a penalty for selling an illegal drug influence demand, supply,
price, and the quantity of the drug consumed?
If the penalty is levied on the seller, the penalty is added to the minimum price required for supplying the
good or service. The demand curve remains unchanged but the supply curve shifts leftward, so that the
vertical distance between the initial supply curve and the supply curve with the penalty equals the dollar
value of the penalty. In this case, the equilibrium price of the good rises and the equilibrium quantity
decreases.
2. How does the imposition of a penalty for possessing an illegal drug influence demand, supply,
price, and the quantity of the drug consumed?
If the penalty is levied on the buyer, the penalty is subtracted from the maximum willingness to pay for the
good. The supply curve remains unchanged and the demand curve shifts leftward, so that the vertical
distance between the initial demand curve with the demand curve with the penalty equals the dollar value
of the penalty. In this case, the equilibrium price of the good falls and the equilibrium quantity decreases.
3. How does the imposition of a penalty for selling or possessing an illegal drug influence
demand, supply, price, and the quantity of the drug consumed?
If buyers and sellers face penalties, both the demand and supply curves shift leftward. If the shift of the
supply curve is larger, the equilibrium price rises and quantity decreases; if the shift of the demand curve is
larger, the price falls and quantity decreases; if the shifts are the same magnitude, the price is unchanged
and the quantity decreases.
102 CHAPTER 6
4. Is there any case for legalizing drugs?

To reduce the consumption of drugs, they can be legalized and taxed. Legalizing and then taxing drugs has
the benefit of raising funds for the government that could be used to help educate people about the danger
of consuming drugs. However, if very high taxes are necessary to reduce the consumption of illegal drugs
to the level of use when they were banned, this will cause buyers and sellers to engage in unreported trade
in the black market and avoid the tax through tax evasion.
Answers to the Problems and Applications

1. Figure 6.1 illustrates the market for rental
housing in Townsville.
a. What are the equilibrium rent and
equilibrium quantity of rental housing?
The equilibrium rent is $450 a month and the
equilibrium quantity is 20,000 housing units.
If a rent ceiling is set at $600 a month, what is
b. The quantity of housing rented?
The quantity of housing rented is equal to 20,000
units. If the rent ceiling is set at $600 per month,
it is above the equilibrium rent and so is
ineffective. The rent stays at $450 per month and
the quantity rented remains at 20,000 housing
units.
c. The shortage of housing?
There is no shortage of housing units. Because the
rent ceiling is ineffective, the market remains at its
equilibrium so there is no shortage of housing units.
d. The quantity of housing rented?
The quantity rented is 10,000 housing units. The quantity of housing rented is equal to the quantity
supplied at the rent ceiling.
e. The shortage of housing?
The shortage of housing is 20,000 housing units. At the rent ceiling, the quantity of housing demanded is
30,000, but the quantity supplied is 10,000, so there is a shortage of 20,000 housing units.
f. The maximum price that someone is willing to pay for the last unit of housing available?
The maximum price that someone is willing to pay for the 10,000th unit available is $600 a month. The
demand curve tells us the maximum price that someone is willing to pay for the 10,000th unit.
2. Capping Gasoline Prices
The recent rise in gasoline prices has many people calling for price caps… price caps are a
curse to consumers. … Capped prices … generate a distorted reflection of reality, causing
buyers and suppliers to act in ways inconsistent with it … By masking reality, price controls
only make matters worse.
Pittsburgh Tribune-Review, September 12, 2005
If a price ceiling is set below the equilibrium price in the market for gasoline, what are its
effects on
a. The quantity of gasoline supplied and demanded?
If the price ceiling is set below the equilibrium price, the quantity of gasoline demanded increases and the
quantity of gasoline supplied decreases.
b. The quantity of gasoline sold and the shortage or surplus of gasoline?
With the increase in the quantity demanded and the decrease in quantity supplied, a shortage of gasoline is
created. The quantity of gasoline sold decreases from the equilibrium quantity before the price ceiling to
equal the quantity supplied at the ceiling price.
104 CHAPTER 6
c. The maximum price that someone is willing to pay for the last gallon of gasoline available on
a black market?
The maximum price someone is willing to pay for the last gallon of gasoline available is determined by the
height of the demand curve. The demand curve is upward sloping, so when the quantity of gasoline
available decreases, the maximum price that someone is willing to pay for the last gallon available
increases.
d. Draw a demand and supply graph to illustrate the effects of a price ceiling set below the
equilibrium price in the market for gasoline.
Figure 6.2 shows the effect of a price ceiling set
below the equilibrium price in the market for
gasoline. At the ceiling price there is a shortage
because the quantity of gasoline demanded, 100
million gallons in the figure, exceeds the quantity
of gasoline supplied, 98 million gallons per day.
3. Explain the various ways in which a price
ceiling on gasoline that is set below the
equilibrium price would make buyers and
sellers of gasoline better off or worse off. What
would happen to total surplus and deadweight
loss in this market?
A price ceiling set below the equilibrium price
benefits some consumers and harms others.
Consumers who are able to buy gasoline at the
price ceiling without too much search activity or
have a low cost of search are made better off.
Consumers who cannot buy, who must undertake extensive search activity, or who have a high cost of
search are made worse off. All producers of gasoline are made worse off. The total surplus decreases and a
deadweight loss is created.
4. The table gives the demand and supply Quantity Quantity
schedules of teenage labor. Wage rate demanded supplied
a. What are the equilibrium wage rate and (dollars per hour) (hours per month)
number of hours worked? 4 3,000 1,000
The equilibrium wage rate is $6 an hour and 5 2,500 1,500
2,000 hours a month are worked. 6 2,000 2,000
b. What is the quantity of unemployment? 7 1,500 2,500
Unemployment is zero. Everyone who wants 8 1,000 3,000
to work for $6 an hour is employed.
If a minimum wage for teenagers is set at $5 an hour
c. How many hours do they work?
They work 2,000 hours a month. A minimum wage rate is the lowest wage rate that a teenager can be paid
for an hour of work. Because the equilibrium wage rate exceeds the minimum wage rate, the minimum
wage is ineffective. The wage rate will be $6 an hour and employment is 2,000 hours.
d. How many hours of teenage labor are unemployed?
There is no unemployment. The wage rate rises to the equilibrium wage, the wage rate at which the
quantity of labor demanded equals the quantity of labor supplied. So there is no unemployment.
If a minimum wage for teenagers is set at $7 an hour,

e. How many hours do teenagers work and how many hours are unemployed?
At $7 an hour, 1,500 hours a month are employed and 1,000 hours a month are unemployed. The
quantity of labor employed equals the quantity demanded at $7 an hour. Unemployment is equal to the
quantity of labor supplied at $7 an hour minus the quantity of labor demanded at $7 an hour. The
quantity supplied is 2,500 hours a month and the quantity demanded is 1,500 hours a month, so 1,000
hours a month are unemployed.
f. Demand for teenage labor increases by 500 hours a month. What is the wage rate paid to
teenagers and how many hours of teenage labor are unemployed?
The wage rate is $7 an hour, and unemployment is 500 hours a month. At the minimum wage of $7 an
hour, the quantity demanded is 2,000 hours a month and the quantity supplied is 2,500 hours a month so
500 hours a month are unemployed.
5. India Steps Up Pressure for Minimum Wage for Its Workers in the Gulf
Oil-rich countries in the [Persian] Gulf, already confronted by strong labor protests, are facing
renewed pressure from India to pay minimum wages for unskilled workers. The effort by
India—the largest source of migrant workers in the region, with five million—is the strongest
push yet by home countries to win better conditions for their citizens…
International Herald Tribune, March 27, 2008
If the Persian Gulf countries paid a minimum wage above the equilibrium wage to Indian
workers,
a. How would the market for labor be affected
in the Gulf countries? Draw a supply and
demand graph to illustrate your answer.
Figure 6.3 shows the outcome in the Gulf
countries’ labor markets. In the figure, without a
minimum wage the equilibrium wage rate is $3
per hour and 90 million hours of labor are
employed. The minimum wage decreases the
quantity of labor demanded, in the figure to 60
million hours of labor, and increases the quantity
of labor supplied, in the figure to 150 million
hours of labor. As a result, unemployment
increases to 90 million hours in the figure.
b. How would the market for labor be affected
in India? Draw a supply and demand graph
to illustrate your answer. [Be careful: the
minimum wage is in the Gulf countries, not
in India.]
The effect on the labor market in India is ambiguous. On the one hand workers in India who learn about
the higher wage rates in the Persian Gulf countries might leave India in order to work at these jobs. In this
case, labor supply in India decreases and the labor supply curve in India shifts leftward. On the other hand
Indian workers in the Gulf countries who are unemployed might return to India to gain employment. In
this case, labor supply in India increases and the labor supply curve in India shifts rightward.
c. Would migrant Indian workers be better off or worse off or unaffected by this minimum wage?
Some migrant Indian workers are better off—those who retain their higher paying job or find a higher
paying job without much search activity. Other migrant Indian workers are worse off—those who are fired
106 CHAPTER 6
when the wage rate rises, those who cannot find a job, and those who find a job but only after incurring
much costly search activity.
6. The table gives the demand and supply
Price Quantity Quantity
schedules for chocolate brownies
(cents per demanded supplied
a. If brownies are not taxed, what is the price brownie) (millions per day)
of a brownie and how many are bought? 50 5 3
With no tax on brownies, the price is 60 cents
60 4 4
a brownie and 4 million a day are bought.
70 3 5
b. If sellers are taxed 20¢ a brownie, what are 80 2 6
the price and quantity bought? Who pays 90 1 7
the tax?
The price paid by buyers, including the tax, is 70 cents a brownie, and 3 million brownies a day are
bought. The price received by sellers, excluding the tax, is 50 cents a brownie. Consumers and sellers each
pay 10 cents of the tax on a brownie.
c. If buyers are taxed 20¢ a brownie, what are the price and quantity bought? Who pays the tax?
The price received by sellers, excluding the tax, is 50 cents a brownie, and 3 million brownies a day are
consumed. The price paid by buyers, including the tax, is 70 cents a brownie. Consumers and sellers each
pay 10 cents of the tax.
7. Luxury Tax Heavier Burden on Working Class, It Would Seem
The Omnibus Budget Reconciliation Act of 1990… included … a stern tax on “luxury items”
... In 1990 the Joint Committee on Taxation projected that the 1991 revenue yield from the
luxury taxes would be $31 million. The actual yield was $16.6 million. Why? Because—
surprise!—the taxation changed behavior.
The Topeka Capital-Journal, October 29, 1999
a. Would buyers or sellers of “luxury items” pay more of the luxury tax?
Luxury items have elastic demands. As a result the burden of a tax falls more heavily on sellers.
b. Explain why the luxury tax generated far less tax revenue than was originally anticipated.
Because the demand for luxury items is elastic, the decrease in the quantity bought and sold is large. With
a large decrease in the quantity, the tax revenue raised is small. The anticipated amount of tax revenue
assumed a much smaller decrease in the quantity. Because there was an unexpectedly large decrease in
quantity, the tax revenue generated was much smaller than anticipated.
8. How to Take a Gas Holiday
High fuel prices will probably keep Americans closer to home this summer, despite the gas-tax
“holiday” supported by Hillary Clinton and John McCain that would shave 18 cents off every
gallon of gas through Labor Day…
Time, May 19, 2008
If the federal government removed the 18.4 cents per-gallon gas tax they currently impose,
a. Would the price of gasoline that consumers pay fall by 18.4 cents? Explain.
The price that consumers pay would not fall by the entire 18.4 cents. This result is simply the “flip” side
of the result that if an 18.4 cents per gallon tax is imposed, the price consumers pay does not rise by the
entire 18.4 cents.
b. How would consumer surplus change?
The consumer surplus would increase. Consumers would pay a lower price and would buy a greater
quantity, both of which increase consumer surplus.
9. The demand and supply schedules for rice

are given in the table. What are the price, the Price Quantity Quantity
marginal cost of producing rice, and the (dollars per demanded supplied
quantity produced if the government box) (boxes per week)
a. Sets a production quota for rice of 2,000 1.00 3,500 500
boxes a week? 1.10 3,250 1,000
With a production quota of 2,000 boxes a week, 1.20 3,000 1,500
the price is $1.60 a box, the marginal cost $1.30 1.30 2,750 2,000
a box, and the quantity produced is 2,000 boxes 1.40 2,500 2,500
a week. The production quota decreases the 1.50 2,250 3,000
quantity supplied to 2,000 boxes a week. The 1.60 2,000 3,500
price willingly paid for 2,000 boxes a week is
$1.60 (given by the demand schedule). The marginal cost of producing 2,000 boxes of rice is given by the
supply schedule and is $1.30 a box.
b. Introduces a subsidy to rice growers of $0.30 a box?
With a subsidy of $0.30 a box for rice, the price is $1.20 a box, the marginal cost $1.50 a box, and the
quantity produced is 3,000 boxes a week. The subsidy of $0.30 lowers the price at which each quantity in
the table is supplied. For example, rice farmers will supply 3,000 boxes a week if the price is $1.50 minus
$0.30, which is $1.20. With a subsidy, the market equilibrium occurs at a price of $1.20 a box. At this
price, the quantity demanded is 3,000 boxes and the quantity supplied is 3,000 boxes. The marginal cost
of producing rice is given by the supply schedule and is $1.50 a box.
10. Figure 6.4 illustrates the market for a banned
substance. What are the market price and
quantity consumed if a penalty of $20 a unit
is imposed on
a. Sellers only?
With a penalty of $20 a unit on sellers, the price
is $70 a unit and the quantity consumed is 100
units. The $20 penalty on sellers decreases the
supply. The supply curve shifts leftward so that
the vertical distance between the initial supply
curve and the new supply curve is $20. With this
new supply curve, the equilibrium price is $70 a
unit and the equilibrium quantity is 100 units.
b. Buyers only?
With a penalty of $20 a unit on buyers, the price
is $50 a unit and the quantity consumed is 100
units. The $20 penalty on buyers decreases the
demand. The demand curve shifts leftward so that
the vertical distance between the initial demand curve and the new demand curve is $20. With this new
demand curve, the equilibrium price is $50 a unit and the equilibrium quantity is 100 units.
c. Both sellers and buyers?
With a penalty of $20 a unit on sellers and on buyers, the price is $60 a unit and the quantity consumed is
90 units. The $20 penalty on sellers decreases the supply. The supply curve shifts leftward so that the
vertical distance between the initial supply curve and the new supply curve is $20. The $20 penalty on
buyers decreases the demand. The demand curve shifts leftward so that the vertical distance between the
108 CHAPTER 6
initial demand curve and the new demand curve is $20. With these new supply and demands curves, the
equilibrium price is $60 a unit and the equilibrium quantity is 90 units.
11. Coal Shortage at China Plants
Chinese power plants have run short of coal, an unintended effect of government-mandated
price controls—a throwback to communist central planning-----to shield the public from rising
global energy costs. … Beijing has also frozen retail prices of gasoline and diesel. That helped
farmers and the urban poor, but it has spurred sales of gas-guzzling luxury cars and propelled
double digit annual growth in fuel consumption. Oil refiners say they are suffering heavy
losses and some began cutting production last year, causing fuel shortages in parts of China’s
south.
CNN, May 20, 2008
a. Are China’s price controls described in the news clip price floors or price ceilings?
China’s price controls are price ceilings.
b. Explain how China’s price controls have created shortages or surpluses in the markets for
coal, gasoline, and diesel.
In the face of increased demand, China’s price controls have kept the price from rising to its equilibrium.
As a result the quantity demanded exceeds the quantity supplied and shortages have resulted.
c. Illustrate your answer to b graphically by using the supply and demand model.
Figure 6.5 illustrates the situation in the market
for coal; the figures for gasoline and diesel are
similar. In Figure 6.5 at the controled price of
$550 per ton, the quantity of coal demanded is
100 million tons per week, the quantity of coal
supplied is 97.5 million tons per week so there is a
shortage of 2.5 million tons per week.
d. Explain how China’s price controls have
changed consumer surplus, producer surplus,
total surplus, and the deadweight loss in the
markets for coal, gasoline, and diesel.
China’s price controls have increased the
consumer surplus of consumers who can buy the
product at the controlled price without incurring
high search costs but decreased the consumer
surplus of those who cannot buy or those who can
buy but who incur high search costs. The overall
effect on the consumer surplus is ambiguous and
depends on the amount of search costs. The
producer surplus and the total surplus have decreased. The price controls have created a deadweight loss.
e. Illustrate your answer to d graphically by using the supply and demand model.
Figure 6.6 shows the consumer surplus, producer
surplus, and deadweight loss. With no price ceiling
the consumer surplus is equal to area A + area B +
area C. With the price ceiling consumer surplus is
equal to area A and perhaps some of area B + area E
depending on the search costs of finding coal. If these
search costs are extensive, then all of area B + area E
will be used up as search costs. The producer surplus
without the price ceiling is equal to area E + area F +
area G. With the price ceiling the producer surplus is
equal to area G. Without the price ceiling there is no
deadweight loss. With the price ceiling there is a
deadweight loss equal to area C + area F.
12. Despite Protests, Rent Board Sets 7.25% Increase
Rents for New York City’s one million rent
stabilized apartments can increase by as much as
7.25 percent over the next two years, the city’s
Rent Guidelines Board voted last night ...
According to a report ... costs for the owners of rent-stabilized buildings rose by 7.8 percent in
the last year. … The rent-increase vote comes at a time of growing concern about the ability of
the middle class to afford to live in New York City.
The New York Times, June 28, 2006
a. If rents for rent-stabilized apartments do not increase, how do you think the market for
rental units in New York will develop?
If the rents do not increase, there will be a persistent shortage of apartments. The quality of the available
apartments decreases even more over time as owners do not have an incentive to keep up the maintenance.
b. Are rent ceilings in New York helpful to the middle class? Why or why not?
The rent controls are helpful to middle-class New Yorkers who already have a rent controlled apartment.
They definitely are not helpful to middle-class New Yorkers who are looking for an apartment.
c. Explain the effect of the increase in the rent ceiling on the quantity of rent-stabilized
apartments.
The increase in the rent ceiling increases the quantity of apartments supplied. Over time, it might increase
the supply of apartments or, perhaps more realistically, either prevent or slow a decrease in the supply of
apartments.
d. Why is rent stabilization a source of conflict between renters and owners of apartments?
Current renters of apartments are made better off by rent controls because these regulations keep rents at
lower levels than their equilibrium. Apartment owners are made worse off by rent controls for the exact
same reason: These regulations keep rents at lower levels than their equilibrium. Hence renters lobby to
retain rent stabilization regulations and apartment owners lobby to remove them.
110 CHAPTER 6
13. House Passes Increase in Minimum Wage to $7.25

…first increase in the federal minimum wage in nearly a decade, boosting the wages of the
lowest-paid American workers from $5.15 to $7.25 an hour… Republican leaders, backed by
small business lobbyists and restaurant groups, argued fiercely that raising the minimum wage
would cripple the economy and must be accompanied by significant tax cuts for small
businesses.
The Washington Post, January 11, 2007
a. Use a graph of the market for low-skilled labor to illustrate the effect of the increase in the
minimum wage from $5.15 to $7.25 an hour on the quantity of labor employed.
Figure 6.7 shows the effect in the labor market.
Before the hike in the minimum wage, the old
minimum wage was not binding so that
equilibrium employment was 100 million hours
per week and the equilibrium wage rate was $6.00
per hour. After the increase in the minimum wage,
employment falls to 98 million hours per week (the
quantity of labor demanded at a wage rate of $7.25
an hour) and unemployment equals 3 million
hours per week (the difference between 101 million
hours per week, the quantity of labor supplied at a
wage rate of $7.25 an hour and quantity of labor
demanded at the same wage rate.)
b. Explain the effects of the higher minimum
wage on the workers’ surplus and the firms’
surplus. Does the labor market become more
efficient or less efficient? Explain.
Taking account of the cost of job search, workers’
surplus decreases. Firms’ surplus also decreases.
The labor market becomes less efficient and a deadweight loss is created.
c. Would a cut in the tax on the small business profits offset the effect of the higher minimum
wage on employment? Explain.
The tax cut on small businesses would offset some of the harm imposed on small businesses but it would
not offset much of the decrease in employment. The higher wage rate leads firms to decrease the quantity
of labor they demand. If a tax cut increases firms’ profitability and they respond by increasing their
production, then the demand for labor will increase. This increase would offset some of the initial fall in
employment. But the offset likely would be small because the cut in taxes will be shared between the
businesses and the consumers.
d. Would a cut in the Social Security tax that small businesses pay offset the effect of the higher
minimum wage on employment? Explain.
A cut in the Social Security Tax imposed on small businesses could offset the effect the minimum wage
hike had on decreasing employment. If Social Security Taxes are cut, firms’ demand for labor would
increase which would result in an increase in employment. Of course the size of the offset would depend
on the size of the cut in the Social Security Tax and the elasticity of demand for labor and the elasticity
supply of labor. Because the supply of labor is probably quite inelastic, most of the benefit of the cut in
Social Security tax would be received by workers, which also makes the potential offset small.
14. The demand and supply schedules for tulips

are in the table to the right. Price Quantity Quantity
a. If tulips are not taxed, what is the price and (dollars per demanded supplied
how many bunches are bought? bunch) (bunches per week)
The price is $14 per bunch and 80 bunches are 10 100 40
purchased. 12 90 60
b. If tulips are taxed $6 a bunch, what are the 14 80 80
price and quantity bought? Who pays the 16 70 100
tax? 18 60 120
If tulips are taxed $6 a bunch, consumers pay
$18 per bunch, suppliers receive $12 per bunch, and 60 bunches per week are bought. Of the $6 tax,
consumers pay $4 in the form of a higher price paid and suppliers pay $2 in the form of a lower price kept
by them.
15. Congress Passes Farm Bill, Defies Bush
Congress sent the White House a huge election year farm bill Thursday that includes a boost
in farm subsidies. … Bush has threatened to veto the $290 billion bill, saying it is fiscally
irresponsible and too generous to wealthy corporate farmers in a time of record crop prices. …
$40 billion is for farm subsidies, while almost $30 billion would go to farmers to idle their
land…
CNN, May 15, 2008
a. Why does the federal government subsidize farmers?
The federal government subsidizes farmers because of extensive farm lobbying. Of course, the farm lobby
groups assert that subsidies guarantee food to American consumers, but in reality it is likely the case that
farmers lobby for subsidies because subsidies make them better off. The subsidies help farmers avoid low
prices and low incomes.
b. Explain how a subsidy paid to cotton farmers affects the price of cotton and the marginal cost
of producing it.
A subsidy increases the supply of cotton. As a result, the price of cotton falls and the quantity produced
increases. With the increase in the quantity produced the marginal cost of cotton rises.
c. Explain how a subsidy paid to cotton farmers affects the consumer surplus and producer
surplus from cotton. Does the subsidy make the market more efficient or less efficient?
Explain.
Both the consumer surplus and producer surplus increase. But a deadweight loss results because, at the
expanded level of production, marginal cost exceeds marginal benefit. Hence the subsidy makes the market
less efficient.
d. How would a payment to cotton farmers to idle their land influence the supply of cotton?
A payment to farmers to idle their lands would decrease the supply of cotton.
e. How would a payment to cotton farmers to idle their land affect the consumer surplus and
the producer surplus from cotton? Explain.
The consumer surplus decreases. The price consumers pay rises and the quantity purchased decreases, both
of which reduce consumer surplus. The producer surplus increases if the demand is elastic and decreases if
the demand is inelastic. (However, the total revenue suppliers receive, including the subsidy, rises.)
16. Cigarette Taxes, Black Markets, and Crime: Lessons from New York’s 50-Year Losing Battle
New York City now has the highest cigarette taxes in the country—a combined state and local
tax rate of $3.00 per pack. Consumers have responded by turning to the city’s bustling black
112 CHAPTER 6
market and other low-tax sources of cigarettes. During the four months following the recent
tax hikes, sales of taxed cigarettes in the city fell by more than 50 percent… [H]igh taxes have
created a thriving illegal market for cigarettes in the city. That market has diverted billions of
dollars from legitimate businesses and governments to criminals…
Cato Institute, February 6, 2003
a. How has the market for cigarettes in New York City responded to the high cigarette taxes?
Consumers (and some suppliers!) have turned to the black market. In the black market taxes are not
collected so the price to consumers is significantly lower. So the tax decreases the quantity demanded in
the legal market and increases demand in the black market.
b. How does the emergence of a black market impact the elasticity of demand in a legal market?
The black market is a close substitute for the legal market, so the emergence of the black market increased
the price elasticity of demand in the legal market.
c. Why might an increase in the tax rate actually cause a decrease in the tax revenue?
If the demand is elastic, then the decrease in the equilibrium quantity from the tax is large enough so that
the government collects less tax revenue. More specifically, if the magnitude of the percentage decrease in
the quantity exceeds the percentage increase in the tax rate, then the tax revenue collected by the
government decreases.
17. Study Reading Between the Lines (pp. 146–147) about the market for gasoline.
a. Explain to truck drivers why a cap on the price of gasoline would hurt middle class people
more than the high price of gasoline hurts.
The high price of gasoline harms middle-class people because they must pay a high price. But the choice of
whether to pay the high price or go without lies the person. A price cap creates a shortage because the
quantity of gasoline demanded exceeds the quantity of gasoline supplied. With the shortage some middle-
class people will be unable to buy gasoline and virtually all middle-class people will need to spend extensive
time driving to search for gasoline to buy, thereby wasting time and gasoline. Both of these harm middle-
class consumers and they have no choice—some are simply unable to find gasoline to buy and all of them
must search for gasoline.
b. Explain why Barack Obama is right about the effects of a temporary suspension of the federal
gas tax.
Mr. Obama suggested a temporary suspension of the federal gas tax might not lower the price paid by
consumers by much. If the supply is inelastic, which is likely the case, the tax cut will lower the price paid
by consumers only a fraction of the 18.4¢ tax cut and will raise the price received by suppliers a fraction of
the 18.4¢. Mr. Obama is correct if the elasticity of supply is small.
c. Explain why it is inefficient for Asian governments to subsidize gasoline.
A subsidy increases the supply and lowers the price paid by consumers while raising the price, including
the subsidy, received by sellers. The quantity increases and exceeds the efficient quantity. Because the
quantity exceeds the efficient quantity, a deadweight loss is created. The deadweight loss indicates that
society is harmed by the subsidy.
18. On December 31, 1776, Rhode Island established wage controls to limit wages to 70¢ a day for
carpenters and 42¢ a day for tailors.
a. Are these wage controls a price ceiling or a price floor? Why might they have been
introduced?
The wage controls are price ceilings. They might have been introduced because the wages being paid to
carpenters and tailors were considered “too high,” possibly because of an increase in demand for their
services or possibly because all prices and wages were rising and these wages were rising the fastest.
b. If these wage controls are effective, would you expect to see a surplus or a shortage of
carpenters and tailors?
If the wage controls are effective, there would be a shortage of carpenters and tailors.
19. The table gives the demand and supply
Price Quantity Quantity
schedules for an illegal drug.
(dollars per demanded supplied
a. If there are no penalties on buying or unit) (units per day)
selling the drug, what is the price and 50 500 300
how many units are consumed? 60 400 400
The price is $60 per unit and 400 units are
70 300 500
consumed.
80 200 600
b. If the penalty on sellers is $20 a unit, 90 100 700
what are the price and quantity
consumed?
The price is $70 per unit and 300 units are consumed.
c. If the penalty on buyers is $20 a unit, what are the price and quantity consumed?
The price $50 per unit and 300 units are consumed.
20. Use the links in MyEconLab (Chapter Resources, Chapter 6, Web links) to get information
about living wage campaigns and the Harvard Living Wage Campaign.
a. What is the campaign for a living wage?
Though the Harvard Living Wage Campaign has other goals, the primary goal, from the web page, is to
force Harvard to “… implement a living wage with benefits for all Harvard workers, whether directly-
employed or hired through outside firms. Studies of the local cost of living, such as those conducted by the
Economic Policy Institute and Wider Opportunities for Women, suggest a living wage standard of at least
$12 per hour plus benefits. The wage standard must be adjusted annually for inflation, and at the very
minimum should exceed the wage standard set by the Cambridge living wage ordinance: currently $11.11
per hour.”
b. How would you distinguish the minimum wage from a living wage?
While similar, a minimum wage and a living wage differ in two key respects. First, the minimum wage is
changed only infrequently. The Harvard Campaign for a Living Wage wants the wage adjusted annually
for inflation. Second, the minimum wage is set at a level determined by political considerations. The
Harvard Campaign for a Living Wage wants the “living wage” set at a level that depends on the cost of
living.
c. If the Living Wage Campaign succeeds in raising the wage rate above the equilibrium wage
rate, how would the living wage affect the quantity of labor employed and the amount of
unemployment?
The quantity of labor demanded decreases so that employment decreases. The amount of unemployment
increases because there is a surplus of labor.
d. Would a living wage set above the equilibrium wage rate be efficient? Would it be fair?
A living wage above the equilibrium wage would be inefficient because at the level of employment that
results, the marginal benefit received by Harvard exceeds the marginal cost of workers. The living wage
would not be fair using either the fair results or the fair rules approach. Workers who receive wage hikes
and keep their jobs gain from a living wage but workers who lose their jobs and workers who must
extensively search for a job lose from the living wage. Those who keep (or find) jobs are not necessarily the
least well off, so the minimum wage fails the fair results approach to fairness. And the minimum wage fails
the fair rules approach to fairness because the minimum wage blocks voluntary transactions that otherwise
would occur.
114 CHAPTER 6
21. Use the links in MyEconLab (Chapter Resources/Chapter 6/Web links) to get information
about production quotas on sugar in Europe. Why do you think the European nations assign
production quotas for sugar? If the European sugar quotas are less than the equilibrium
quantities, who benefits from the quotas? Who loses from the production quotas?
European nations assign production quotas for sugar to help keep the price of sugar high because of
lobbying by sugar producers. The sugar producers benefit from the production quotas; sugar consumers
are harmed by the prodcution quotas. The producers benefit because the price is kept higher than
otherwise and the consumers lose because the price is kept higher than otherwise.
Additional Problems
1. The figure shows the demand for and supply
of rental housing in Township.
a. What are the equilibrium rent and
equilibrium quantity of rental housing?
b. The quantity of housing rented?
c. The shortage of housing?
d. The maximum price that someone is willing
to pay for the last unit available?
2. The table gives the demand schedule and the
Wage rate Quantity Quantity
supply schedule for high school graduates.
(dollars per demanded supplied
a. What is the equilibrium wage and the hour) (hours per month)
equilibrium quantity of employment. 6 9,000 4,000
b. What is the number of hours of labor 7 8,000 5,000
unemployed? 8 7,000 6,000
c. If a minimum wage is set at $7 an hour, 9 6,000 7,000
how many hours do high school graduates 10 5,000 8,000
work?
d. If a minimum wage is set at $7 an hour, how many hours of labor are unemployed?
e. If a minimum wage is set at $9 an hour, what are the number of hours of labor employed and
the number of hours of labor unemployed?
f. If the minimum wage is $9 an hour and demand increases by 500 hours a month, what is the
wage rate paid to high school graduates and how many hours of their labor are unemployed?
3. The demand and supply schedules for coffee Price Quantity Quantity
are given in the table. (dollars per demanded supplied
a. If there is no tax on coffee, what is the price cup) (cups per hour)
of a cup of coffee and how much coffee is 1.50 90 30
bought? 1.75 70 40
b. If a tax of 75¢ a cup is introduced, what is 2.00 50 50
the price of a cup of coffee and how much 2.25 30 60
coffee is bought? Who pays the tax? 2.50 10 70
116 CHAPTER 6
Solutions to Additional Problems

1. a. Equilibrium rent is $300 a month and the equilibrium quantity is 30,000 housing units.
b. The quantity rented is 10,000 housing units. The quantity of housing rented is equal to the quantity
supplied at the rent ceiling.
c. The shortage of housing is 40,000 housing units. At the rent ceiling, the quantity of housing demanded is
50,000, but the quantity supplied is 10,000, so there is a shortage of 40,000 housing units.
d. The maximum price that someone is willing to pay for the 10,000th unit available is $450 a month. The
demand curve tells us the maximum price that someone is willing to pay for the 10,000th unit.
2. a. The equilibrium wage rate is $8.50 an hour, and employment is 6,500 hours a month.
b. Unemployment is zero. Everyone who wants to work for $8.50 an hour is employed.
c. They work 6,500 hours a month. A minimum wage rate is the lowest wage rate that a person can be paid for
an hour of work. Because the equilibrium wage exceeds the minimum wage, the minimum wage is
ineffective. The wage rate will be $8.50 an hour and employment is 6,500 hours.
d. There is no unemployment The wage rate rises to the equilibrium wage—the quantity of labor demanded
equals the quantity of labor supplied. So there is no unemployment.
e. At $9 an hour, 6,000 hours a month are employed and 1,000 hours a month are unemployed. The quantity
of labor employed equals the quantity demanded at $9 an hour. Unemployment is equal to the quantity of
labor supplied at $9 an hour minus the quantity of labor demanded at $9 an hour. The quantity supplied is
7,000 hours a month, and the quantity demanded is 6,000 hours a month. So 1,000 hours a month are
unemployed.
f. The wage rate is $9 an hour, and unemployment is 500 hours a month. At the minimum wage of $9 an
hour, the quantity demanded is 6,500 hours a month and the quantity supplied is 7,000 hours a month. So
500 hours a month are unemployed.
3. a. With no tax on coffee, the price is $2.00 a cup and 50 cups an hour are bought.
b. The price is $2.25 a cup, and 30 cups an hour are bought. Consumers pay 25 cents of the tax on a cup of
coffee and sellers pay 50 cents of the tax on a cup of coffee. The tax decreases the supply of coffee and raises
the price of coffee. With no tax, sellers are willing to sell 30 cups an hour at $1.50 a cup. But with a 75 cent
tax, they are willing to sell 30 cups an hour only if the price is 75 cents higher at $2.25 a cup.
Another random document with
no related content on Scribd:
cloth, &c., which is not usually all paid at once, but by instalments
during several years. A father, who has many daughters, becomes a
rich man by the presents which he receives for each on their
marriage. If a young man wishes to marry, and is possessed of
nothing, it often occurs that he makes a voyage of a year's duration
among the other islands, and making known his purpose demands
contributions from those he visits, to enable him to make up the
instalment of goods which it is necessary to place in the hands of the
parents. The ceremony of betrothing is celebrated by a feast, at
which arrack forms a very necessary adjunct.
It is not lawful for a man to enter the house of a neighbour during his
absence, and if any one offends in this particular he is obliged to pay
a piece of cloth, or some other goods, to the owner of the house.
The sentence is passed by the elders, who openly call upon the
offender to pay the fine, which makes him so ashamed, that he
either does so immediately or leaves the village. This fine is called
"Pakul Dende" by the natives. Should any one even touch the wife of
another, he must make a large atonement for the offence. The
Macassar traders informed me, that they were always obliged to
watch their people narrowly, to keep them from approaching too near
to the married women, as the least touch would render them liable to
a fine, and unless this was paid the Arafuras would not be satisfied.
They pride themselves much in the possession of a number of
elephants' tusks, and brass gongs; the value of the first being
determined according to their length, and of the latter by their weight
and circumference. They formerly obtained these articles from the
Banda traders, who themselves procured them from Batavia; but
now they are brought by the Macassars from Batavia, Malacca and
Singapore.[24] These articles do not form for them a necessary
article of life, but are put to a more worthy use, which one would
scarcely expect to find among such uncivilized people. They have a
very excusable ambition to gain the name of rich men, by paying the
debts of their poorer fellow villagers. The officer, whom I quoted
above, related to me a very striking instance of this. At Affara he was
present at the election of the village chiefs, two individuals aspiring
to the station of Orang Tua. The people chose the elder of the two,
which greatly afflicted the other, but he soon afterwards expressed
himself satisfied with the choice the people had made, and said to M.
Bik, who had been sent there on a commission, "What reason have I
to grieve; whether I am Orang Tua or not, I still have it in my power
to assist my fellow villagers." Several old men agreed to this,
apparently to comfort him. Thus the only use they make of their
riches is to employ it in settling differences, and as this is essentially
necessary in an Orang Tua, none but wealthy villagers can aspire to
the office.
The following occurrence gives a remarkable proof of the mildness of
their laws. An Arafura, who had gone out fishing, intending to be
absent eight days, did not return, and his wife, who had no more
provisions at home than would last for this period, requested
assistance from her neighbour. Hence arose a mutual friendship,
which, however, at first only shewed itself in little attentions, the man
drawing water, cutting wood, and providing fish for his fair neighbour,
who could not avoid feeling grateful for the kindness; and no one will
be surprised at their friendship at length ripening into love, when,
conscious of their guilt, they took flight to one of the neighbouring
islands. The husband, who had been detained by contrary winds,
returned at the end of two months, and demanded his wife of her
brothers, who were therefore necessitated to go in search of her,
when the guilty couple were soon discovered and brought back to
their village. The injured husband demanded an enormous fine from
the seducer of his wife, which the latter refused to pay, stating that
during his entire life he should not be able to collect a sufficient
quantity of trepang to make up the sum. An appeal was therefore
made to the elders, and on the woman being questioned, she frankly
stated the kindness of her neighbour in supplying her wants had
called forth her gratitude, and this ripened into love—she had made
the first advances. The elders considered this mode of proceeding
on the part of the wife rather strange, and taking it into consideration
that it was very difficult for any one to withstand a declaration of love
from a young woman, they lost sight of the severe laws respecting
the conduct of men towards married women, and determined that
the offender should only pay a small fine, and advised the husband
never again to leave his wife at home without provisions. The lady
returned home with her husband, who was wise enough never to
mention the subject, following up the old proverb—
"Men moet geene aude
Koeijen uit de sloot halen."
Among the Arafuras the treatment of their dead betrays, in the
greatest degree, their uncivilized condition, and the uncertainty
which exists among them as to their future state.[25] When a man
dies all his relations assemble and destroy all the goods he may
have collected during his life, even the gongs are broken to pieces
and thrown away. In their villages I met with several heaps of
porcelain plates and basins,[26] the property of deceased individuals,
the survivors entertaining an idea that they have no right to make
use of them.
After death the body is laid out on a small mat, and supported
against a ladder until the relatives of the deceased assemble, which
seldom takes place until four days have elapsed; and as
decomposition will have commenced before this, the parts where
moisture has appeared are covered with lime. Fruitless endeavours
to stop the progress of decay! In the meantime damar or resin is
continually burnt in the house, while the guests who have already
assembled regale themselves with quantities of arrack, and of a
spirit they themselves prepare from the juice of a fruit, amid violent
raving, the discord being increased by the beating of gongs and the
howling and lamentation of the women. Food is offered to the
deceased, and when they find that he does not partake of it, the
mouth is filled with eatables, siri and arrack, until it runs down the
body, and spreads over the floor.
When the friends and relatives are all collected the body is placed
upon a bier, on which had been laid numerous pieces of cloth, the
quantity being according to the ability of the deceased; and under
the bier are placed large dishes of China porcelain, to catch any
moisture that may fall from the body. The dishes which have been
put to this purpose are afterwards much prized, and it is for this
reason that dishes of an enormous size are so much prized by the
Arafuras. A portion of the moisture that has exuded, is mixed with
arrack and drunk by the guests, who think that they thus show the
true affection they bore to the deceased. During two or three days
the house of the dead is constantly full of drunken and raving guests.
The body is then brought out before the house, and supported
against a post, when attempts are again made to induce it to eat.
Lighted segars, arrack, rice, fruit, &c., are again stuffed into its
mouth, and the by-standers, striking up a song, demand whether the
sight of all his friends and fellow villagers will not induce the
deceased to awaken? At length, when they find all these endeavours
to be fruitless, they place the body on a bier adorned with flags, and
carry it out into the forest, where it is fixed upon the top of four posts.
A tree, usually the Pavetta Indica, is then planted near it; and it is
remarkable that at this last ceremony none but women, entirely
naked, are present. This last ceremony is called by the Arafuras
"Sudah Buang,"[27] by which they mean that the body is now cast
away, and can listen to them no longer. The entire ceremony proves,
that the Arafuras are deprived of that consolation afforded by our
religion; and that they only give expression to the grief they naturally
feel at parting from one to whom they have been attached.
The children, almost from their birth, are fed with boiled labu or
pumpkin, which renders it easy to wean them at a very early period.
On the birth of a child, a cocoa-nut, with some fish, rice and sago are
hung up under the house, and permitted to drop off when they have
decayed. They informed me that this was intended to prevent the
child from ever being in want of anything during his after life.
Those who know how to read the human heart will, perhaps, find in
the character of these remote and untutored people many points of
interest; and I therefore trust that my reader will pardon this little
digression. I will now proceed with a further description of the Arru
Islands.
FOOTNOTES:
[23] On all festive occasions, the starboard side of the deck was
given up to the European seamen, while the Javanese occupied
the larboard side, each amusing themselves according to their
own fashion. As I had music for both parties, the gaieties on
board often attracted spectators from the shore, when we were
laying in harbour.
[24] No better proof can be given of the richness of the Arru
Islands, than the fact of the natives being enabled to purchase so
costly an article as ivory, which is always in great demand at
Singapore for the European market. It is at the latter place chiefly
that the Bughis and Macassar traders obtain the tusks, which are
brought thither from Siam and Cochin China. The brass gongs
are the manufacture of China.
[25] How much it is to be wished that these people, who are
simple, not incredulous, should be converted to Christianity! The
Mohammedans, who always have priests in these parts, make
many proselytes. Yet religion is the chief bond by which the
natives of India are attached to us.
[26] These articles, which are the manufacture of China, are
brought hither from Singapore by the Bughis traders.—Ed.
[27] This term, together with those previously given as in use
among the Arafuras, are all pure Malay, whence we may conclude
that that language, if not their own, is at least familiar to them.—
Ed.
CHAPTER XI.
THE ARRU ISLANDS.
Trade of the Arru Islands.—Chief Productions.—Trepang.
—The Island Vorkay.—The Pearl Fishery.—The Arafuras
of Kobroor and Kobiwatu.—Duryella, the capital of Wama.
—The Schoolmaster.—Homage paid by the Natives to M.
Kam.
For many years since the inhabitants of the Arru Islands have been
uncontrolled by Europeans, and have been without Christian
instructors, so that they have advanced but little in civilization. They
have also been considerable sufferers from not having the protection
of the Dutch authorities, as the Bughis and Macassars, who come
here to trade, are great extortioners, and appeared more in the light
of plunderers than of friendly traders; which, indeed, is the case with
all the people of India when they are the strongest, and are not
controlled by our Government.
The Arru Islands have, however, always been much visited by native
merchants, chiefly on account of the trepang, tortoise-shell, edible
birds'-nests and pearls which they afford. It will be useful here to give
rather a full account of the first of these products, since it is from this
that the natives derive the greater part of their riches.
The trepang, which is a species of holothurie, is found chiefly on
banks composed of clay mixed with fine sand, and covered with
slimy sea-weed, which, at low water, appears above the surface of
the sea. Those engaged in the trade are acquainted with no less
than twenty different sorts, besides which there are several others
which are not eatable, having a very bitter taste. The different sorts
are arranged in the following order:—
1. Trepang Passir, or sand trepang, which is found on banks
composed chiefly of sand, is considered the best, being much in
demand at Kouding, Aring, and Macassar. The price it usually
fetches is one hundred and sixty guilders the picul. The different
sorts which follow decrease in value from this, until the lowest is
thirty guilders the picul.
2. Trepang batu. These have a bluish tinge, and it is necessary to cut
them through the thickest part, or they cannot be properly dried.
3. Trepang corro. This is also cut open, and the entrails removed.
4. Trepang pandang.
5. Trepang nanas, or pine-apple trepang, is covered over with spines
like the fruit whose name it bears.
6. Trepang itam, or black trepang.
7. Trepang kossong, white with black speckles.
8. Trepang buang kulit, from which it is necessary to strip off two thin
skins which cover it.
9. Trepang kay Java.
10. Trepang Marigi. This is obtained on the coast of New Holland,
and is boiled up with the bark of the kayu bankudu, which imparts to
the animal a red colour, and preserves it dry for a long period.
11. Trepang donga.
12. Trepang kunyit.
13. Trepang gama.
14. Trepang taai konkong.
15. Trepang bilala. This is black, and the only species that is flat.
16. Trepang massee.
17. Trepang katjang goreng. This is small, and is also cured with the
bark of the kayu bankudu.
18. Trepang kuwas.
19. Trepang puti. This sort is small, and of a whitish colour.
After the trepang is caught, it is immediately boiled in sea-water, in
which the leaves of the papya are steeped, to take off a thin skin
which covers it. It is then placed in baskets or holes, and covered up
with earth until the following morning, when it is washed repeatedly
to deprive it as much as possible of the disagreeable taste of coral
which it possesses, after which it is spread out on mats, and dried.
Even then it is not entirely free from the unpleasant flavour which is
peculiar to all holothuries or polypes, for which reason the Chinese,
before making it up into soups or ragouts, boil it with sugar-cane.
The Arafuras sell the trepang to the Bughis and others by the ukur, a
measure containing about half a picul. The traders sort the trepang,
there being a great difference in the value of the various kinds. The
price of the first sort in China is one hundred and twenty Spanish
dollars the picul, while the various sorts mixed together can be
purchased at the back of the islands, as the eastern parts are called,
at the rate of ten to fifteen Spanish dollars the picul. The number of
the traders, who now visit the Arrus, has caused the price of this
article to increase considerably above that which was formerly given.
When the people of Banda had the trade exclusively in their hands, a
picul of trepang might be obtained for a sarong, or piece of cloth of
the value of eight guilders, and twenty birdsnests for a chopping-
knife; while now the latter, which will weigh less than a kati, or 1-
1/4lb., cannot be purchased for less than from fourteen to eighteen
guilders. These articles would, however, still yield a large profit were
it not necessary to remain among the Arrus for a period of four
months to collect a cargo of any importance. On this account small
brigs and paduakans only are employed in the trade, as their
expense is less than that of larger vessels.
Vorkay, an island lying exposed to the ocean at the south-eastern
extremity of the group, is of great importance from its pearl fishery. At
a distance of eight miles to the eastward lay several small islands,
between which and Vorkay the trepang banks are situated. At low
water hundreds of men, with their wives and children, may be
perceived wading from Vorkay towards these islets, (the water being
only two or three feet deep,) carrying a basket at their backs, and
having in their hands a stick provided with an iron point. When the
water is deeper than this, they make use of canoes. For fishing on
the banks situated at a greater distance, the Arafuras use a prahu,
constructed for the purpose, in which they embark their entire family.
These vessels have a very strange appearance. They have great
beams, and the stern runs up into a high curve, while two planks
project forward from the bows. The family resides in three or four
huts, composed of atap or palm leaves, erected within the vessel,
and a railing runs entirely round it, apparently to prevent the children
from falling overboard. The prahu is propelled by a large sail made of
rushes, which folds up like a fan, (in a similar manner to the sails of
the Chinese junks), set upon a tripod mast of bamboos, while it is
steered by two rudders. Two other masts are also erected, which
answer no purpose but that of displaying several small flags.
As I have already stated, it is almost impossible for a large ship to
approach the eastern side of the Arrus, as in all parts banks and
reefs stretch far out to sea. There are, however, a few small
openings, through which a brig may enter; but it is absolutely
necessary to have an Arafura pilot on board.
Among the chief villages on Vorkay, are Old and New Affara, Longa,
Uri and Goor, before the last of which lies a great pearl bank. The
natives informed me that it was exhausted, and that they had not
fished it for two years; but this was probably a mis-statement, which
they were induced to make owing to the difficulties attending the
fishery. They said that they only obtained from it large mother-of-
pearl shells for the Chinese market, and that they did not find pearls
inside them. The true pearl oyster is small, with a thin shell.
The pearl fishery is carried on in the following manner. The trader
makes an agreement with the Arafuras for so much a hundred,
paying an advance of a certain quantity of arrack, cloth, &c. When
the price is agreed on the fisher goes to the bank, and dives for the
oysters, which are mostly small and black, in from twenty-four to
thirty feet water, selecting the best he can find. The diving is
attended with much difficulty and danger, as, from the time he
remains under water, the blood often bursts from the nose and
mouth of the diver, while he is also liable to be destroyed by the
numerous sharks which are to be found there.
The chiefs informed me, that in the time of the (Dutch) East India
Company, the pearl fishery was carried on by their order;[28] but
when the Arafuras found themselves becoming more and more
independent of the Christians, and the chiefs were no longer incited
by our Government to carry it on, it was very naturally discontinued,
as the labour attending it is much greater than that of the trepang
fishery. Small quantities of pearls are still obtained in shallow water
for the Bughis traders, but these are of little value, and are chiefly
disposed of to the Chinese, who use them as an ingredient in some
of their medicines.
On one occasion we met with a prahu from the Kabroor Islands (at
the east side of the Arrus), the people in which were superior in
appearance to the trepang fishers of Vorkay. They had clearer skins
than the latter, and their hair, which was also much finer, was very
neatly dressed, and adorned with beads. Their weapons, and the
ornaments of their prahus, displayed great taste. The strangers, who
called themselves Arafuras of Borassi, had abundance of food with
them, together with several hunting dogs.
During the year previous to my visit, when the Governor-General
Baron Van Der Capellen visited the Moluccas, he sent two
schooners of war, the Daphne and Pollux to the Arrus, to enquire
into the condition of the people. The arrival of M. A.J. Bik, who was
at the head of this expedition, had given rise to a hope among the
natives that the Government would take an interest in their affairs, so
that my visit naturally excited much joy among them. They welcomed
us in the most friendly manner, kissed our hands, and expressed the
greatest joy when I informed them of the object of my visit, and of the
purpose of our Government to take them again under their
protection. The frank and kind manner in which men and women,
heathens as well as Christians, came forth to meet us, was truly
striking and impressive, the more from these innocent people being,
unlike many others of the Indian races, entirely free from
dissimulation. Even the children crowded around to kiss us.
On the afternoon of my arrival I went on shore accompanied by M.
Kam and several other gentlemen, to the village of Wanla, which is
erected on a point of limestone rock, about thirty feet above the level
of the sea. It contains only ten or twelve poor and small houses; but
the stone church, which also overhangs the sea, was in very good
condition. Wanla is a dependence of Duryella, the capital of Wama,
but is under the immediate control of an Orang Tua.
In several places we saw prahus hauled up on the beach, which are
hired to the traders during the time they remain among the islands.
In the interior we saw a number of sago trees, the pith of which
constituted the chief food of the natives. The ground, generally, is by
no means fertile, and in many parts is overgrown with underwood,
there being but few spots calculated for the cultivation of rice.
On Sunday, the 28th of August, I set out for Duryella, our road, which
lay along the beach, being almost impassable from the number of
trees which had been thrown up by the sea during the westerly
monsoon. If the inhabitants were rather more industrious they would
cut a road through the beautiful forest which runs down close to the
sea. Among the trees which lined the shore I recognized the kanari,
the katapan laut, the tutun, the yamplon,[29] the casuarina, and the
bua-raja, the last of which bears much resemblance to the Javanese
fern or pohon paku, the leaves having a beautiful green colour; the
fruit, when dried and pounded fine, is often used instead of flour in
the composition of pastry.
After an hour's walking we arrived at Duryella, where we were
received with much solemnity under a salute of lelahs. The village,
which is well built and kept in very good order, forms nearly a
square. On the beach opposite, a stage was erected on a high tree,
on which several lelahs were mounted; this was formerly used for
their protection, when the inhabitants were at war with the people of
Wadia; but since peace had been made between them by M. Bik, the
fortification had been allowed to fall into disrepair.
The house of the Orang Kaya, Jacob Barend, in which we were
received, answered also for a fort. It was erected on high piles of
iron-wood, and consisted of several rooms, in which the numerous
family of the Orang Kaya took up their residence. The remainder of
the houses, which formed the village, were smaller, but constructed
after the same manner; and the neat little church was kept in good
order. The schoolmaster, who resided here, appeared to do his best
in instructing his fellow Christians. These teachers, who also perform
divine service, are usually young natives of Amboyna, who, after
having undergone a course of instruction, are sent among the
neighbouring islands without salaries, and being therefore
dependent on the natives for support, they are sometimes, from want
of the protection of the Government, in very necessitous
circumstances. The hope of being relieved and settled at Amboyna,
after having been employed as missionaries a few years, renders
them very willing to undertake this office, which would otherwise be a
truly great sacrifice on their part, as none can feel greater reluctance
to leave their homes for a long period than the inhabitants of the
Indian Archipelago in general.
M. Bik, on fixing two Amboynese teachers here, whom he brought
with him, promised them a salary, and also to supply them now and
then with necessaries, as occasion might offer. I therefore
considered it my duty to advance them some money and clothes,
while at the same time I suggested to the inhabitants that they ought
regularly to contribute something to the support of these useful men.
The teachers pride themselves on their descent as Amboynese, and
are uncommonly neat in their dress. I never saw one otherwise than
well clad, wearing a three-cornered hat, a black coat of cloth or
cotton, small-clothes of the same materials, with shoes, and black
silk or cotton stockings. The teacher at Wokan was married to the
daughter of the Orang Kaya, and was as much respected as he was
esteemed. Their usual employment consists in instructing the
children in reading and writing the Malay language (Roman letters,
not the Arabic characters, being used), and in initiating them in the
rudiments of the Reformed Religion. They rarely, however, acquire a
full insight into the last, as the young people are forced to leave
school at an early period, that they may assist their parents in their
avocations. He also performs divine service every Sunday, during
which he reads passages from the Bible, and the community under
his direction sing psalms in the Malayan tongue,[30] the service being
usually closed with a discourse on the precepts and duties of
Christianity.
We tarried a considerable time at the residence of the Orang Kaya,
where a number of people had assembled, among whom were the
chiefs of the neighbouring villages, who had come to welcome us
and pay their respects. This afforded me a good opportunity of
breaking to them the object of my visit; and as I wished to make as
much impression on their minds as possible, I arranged that a
general meeting should be held on Wokan on the 29th of August,
when the business might be entered into more fully. M. Kam, also, to
the great satisfaction of the Christians, held a long communication
with them on religious subjects, and about fifty of the natives were
baptized on the occasion. After this ceremony had been completed,
amid the greatest attention and propriety of conduct, we amused
ourselves in examining the gardens in the vicinity, the people
appearing to be much pleased at our visiting their dwellings.
Early on the following morning I despatched two of the boats, with a
portion of my party, to Wokan, and at eight o'clock, by which time a
large number of prahus had collected around the brig, I also
departed in a third boat, accompanied by M. Dielwaart, under a
salute from our guns. The large number of prahus, with which the
chiefs accompanied us, presented a very imposing appearance. As
we approached Wokan, a salvo was fired from a one-pounder gun,
which we had in the boat, and on stepping ashore we were received
with military honours by the twenty-eight armed European seamen
who had preceded us, which, doubtless, made a proper impression
on the Orang Kayas who awaited us on the beach.
We now proceeded to the fort, from which shots were occasionally
fired, while the people welcomed us with loud shouts of joy. Especial
homage was paid to M. Kam, who subsequently arrived from Wama,
as soon as he had stepped on shore; the schoolmaster, and a
number of young men and women assembled around him, and
commenced the twenty-fifth psalm, singing which they accompanied
him until he arrived among us. They then placed themselves
respectfully behind the clergyman, and after the psalm was finished
they rested awhile, and prepared to commence another; but as I
wished to finish my affairs as soon as possible, and at the same time
was desirous of avoiding giving offence to the Mohammedan chiefs
who were present, I requested them to defer it to another occasion.
The Christian inhabitants of these parts take great delight in singing
psalms, and they practice much: they know many of them by heart.
Their respect for the Bible is also very great, and they preserve the
portions of scriptures, which they formerly received, with as much
care as if they were costly jewels. This betokens a strong inclination
and capacity on their part to increase their acquaintance with our
religion, and this trait in their character may, with a little attention, be
made a powerful instrument in improving their condition.
FOOTNOTES:
[28] The pearls obtained were chiefly sent to Japan.—Ed.
[29] This large tree bears a yellow nut, which, when stripped of its
husk and pounded, is mixed up with cotton and simmered over
the fire in an iron pan, until it becomes an oily pap. Strips of
cocoa-nut leaves, or small sticks of bamboo, are steeped in this,
and thus formed into flambeaux, which give a clear light and are
used by the islanders instead of candles.
[30] Our useful countryman, G.H. Werndly, cannot be sufficiently
praised for his Malayan translation of the Old and New Testament,
and also of several psalms, which he has rendered into Malayan
verse.
CHAPTER XII.
THE ARRU ISLANDS.
Gathering of the People at Wokan.—Religious Exercises
of the People.—Their singular Mode of Dress.—The
Church.—The Fort.—State of Christianity on Wokan.—
Dobbo, an important Trading Place.—Commercial
Advantages that may be gained there.—Valuable Fishery.
—The Pilandok.—Ludicrous alarm of the Arafuras.
On the following morning I informed the assembled chiefs of Wokan
of the object of my mission to those parts, namely, to take the
inhabitants under the protection of the Dutch Government; to renew
the mutual friendship which formerly existed between them;[31] to
incite them to carry on more trade, especially with Banda and
Amboyna; to confirm the chiefs in their authority; and to promote the
welfare and prosperity of these islands and their inhabitants.
After the meeting had been broken up, our party, together with the
chiefs of the villages, were invited to dinner by the daughters of the
Upper Orang Kaya. The table was spread with a number of well
cooked dishes. The wine which I had brought for the entertainment
of the chiefs, with the arrack for those of lesser rank, added not a
little to the festivity. I remarked on this occasion, that three Orang
Kayas, after having drunk a tolerable quantum of wine, finished a
bottle of arrack without either of them showing any signs of inebriety.
An unsparing use of spirituous liquors may be considered as the
greatest vice of the inhabitants of the Arrus, both Christians and
Arafuras. The traders bring here large quantities of arrack, together
with an inferior kind of aniseed, on which they obtain a very large
profit. The natives themselves distil a spirit from sago and rice.
After dinner the people were busily employed in arraying themselves
in their best clothes, to attend divine service. Coats and breeches,
probably the manufacture of the previous century, were brought to
light out of their chests, and from the smoke of their fires, where they
had been hung up to preserve them from insects. Among the
presents given to the chiefs by M. Bik the previous year, were
several pieces of black cloth, which the former had made up with
their own hands into coats, &c., after the model of the old-fashioned
smoked clothes above-mentioned, using coarse white thread in the
construction. The remnants of the cloth had been made up into
head-dresses in the form of night-caps. I set the ship's tailor to work
altering their coats, to the no small delight of the chiefs.
The church, situated on the south side of the village, is a handsome
and strong stone building, and although the doors and windows are
wanting, it is otherwise kept carefully in order. On each side of the
entrance are benches and reading desks for the men, while a
number of old-fashioned carved chairs, certainly a century and a half
old, were placed in the centre for the women. Here and there
gravestones might be perceived, the inscriptions on which had
become illegible. Their dead are not now interred in or near the
church, but are deposited in an enclosed cemetery, some distance to
the north-east of the fort. The tomb-stones here are ornamented in
different ways, and it is a strong proof of the good disposition of
these people, that the tombs of the officers of the late East India
Company, who have died here, are kept in as good order as those of
their own chiefs and forefathers.
Early on the following morning, the 30th of August, I was requested
by the natives to allow M. Kam to hold another religious meeting on
this day, that a number more of them might have an opportunity of
being married and christened. I willingly gave my consent, and
promised to be present with my European fellow-voyagers.
On the previous day I had remarked, that the pulpit was ornamented
by a curtain formed of a piece of silk. By way of giving the
congregation an agreeable surprise, I caused the teacher to suspend
in its place a large covering of fine silk, ornamented with the arms of
the King of the Netherlands. The sight of this, on their entering the
church, had a great effect on the people, who loudly expressed their
thanks for this attention; so that I became convinced that this present
of the Government could not have been put to a better use.
During the morning several of the seamen asked my permission to
attend the church, that they might become baptismal witnesses to
some of the natives who had requested their services; this I willingly
allowed, cautioning them however to maintain the strictest propriety
of conduct. On entering the church, where a large congregation was
assembled, we found chairs and benches prepared for our
accommodation. The Upper Orang Kaya and his wife requested me
to stand godfather to their daughter, who was to be christened
Diderika Hendrika; indeed, nearly all the congregation underwent
this ceremony, even people who had attained the age of forty years.
Among those who were united in matrimony, were many couples
who had already lived, for a long period, in a state of wedlock; in
fact, several cases occurred in which parents and children were
married at the same time. On only one occasion was there any
confusion, and this was caused by a ludicrous accident happening to
the dress of a young bridegroom, who had arrayed himself for the
ceremony in some old, worn-out, and smoke-dried clothes, which,
above all, were too small for him. This was too much for any gravity
to endure, and the young ladies especially could not restrain their
merriment; but a friendly hand tendered the unlucky youth a sarong,
in which he would gladly have enveloped himself entirely to conceal
his confusion. To add to the solemnity of the occasion, several
German flutes had been brought to accompany the psalms, the
natives, especially the women, being extremely fond of the music of
this instrument. At the request of M. Kam, my Amboynese piper
attended to play second; but although the poor youth did all he could
with hands and feet, he was unable to keep in tune, so that we were
soon obliged to put a stop to the disconcerto.
The ceremony was extremely long, but the attention shown by the
audience was truly exemplary; indeed, in the mother country I have
seen a congregation asleep from weariness at a much shorter
service, so that in this respect our countrymen and countrywomen
may learn an example from the simple inhabitants of the Arru
Islands. Even after the service they assembled at the house of the
teacher, and sang several more psalms; the newly married couples
being also ceremoniously congratulated on the joyful occasion.
While they were thus employed, I took the opportunity of paying a
visit to the ruins of the fort.
This fort, which is now in state of great dilapidation—patches of a
wall, which was once three feet thick and twenty feet high, alone
remaining—formed a square, with bastions at the corners; but of the
latter nothing was now visible, some posts having been erected in
their place, on which several lelahs were mounted. The house of the
Orang Kaya, which stands in the centre, is the only part in good
repair. The natives were very desirous of having a Dutch garrison
again among them, in which case they would willingly set to work
and put the fort into complete order.
Several of the Mohammedans, who had been driven out of the
village, formerly resided a little to the northward; but these have now
put themselves under the rule of the Christians, with whom they live
on good terms.
I passed the afternoon in settling the affairs of the natives, the chiefs
of the neighbouring villages being present. Bernard Herman was
appointed as Upper Orang Kaya, with the promise of a golden-
knobbed baton. The chiefs of Wadia betrayed considerable jealousy,
and requested me to do them the same honour I had conferred on
the people of Wokan; I therefore promised that I would visit their
head village with the brig, at which they appeared to be well
contented, and departed for their homes to make ready for our
reception. Among the Government presents which I gave to the
Orang Kaya were two Dutch flags, on which they set a high value; in
addition to which I left in his hands some trifles for the Arafuras of
the islands at the back of the group.
At the conclusion of these ceremonies I sent both boats on board the
brig, the remainder of our party intending to stop the night at the
house of the Orang Kaya. During our stay the seamen occupied a
house which had been prepared for their reception, where they were
abundantly supplied with provisions.
To the northward of the chief village of Wokan there are several
small villages, the most important of which, Samau, is inhabited by
Mohammedans, who are under the control of the people of the
capital. The chiefs of the western islands extend their authority over
the Arafuras, each chief having several villages under his rule, the
inhabitants of which paid a willing obedience to their governors while
they were supported by our Government, who, for this purpose, had
only about ten European or Amboynese soldiers on the islands, the
serjeant of the party being the commanding officer. The Arafuras
then considered themselves obliged to give an account of all their
actions to the Christian chiefs, to whom they also delivered up a
portion of the profits of their trade. These heathens, in general, are
much desirous of becoming converts to Christianity, and willingly
allow their children to be instructed in its tenets; but for many years
since there have been no teachers, much less missionaries or
clergymen among them. Our religion has therefore retrograded,
while Islamism, of which there are many priests here, has advanced
considerably. This is much to be regretted; for, as I have already
stated, a similarity in religious belief forms our strongest bond of
union with the people of these countries. The Arafuras prefer
Christianity to Mohammedanism, so that were proper measures
taken much might be done, especially as they are better in their
disposition than the heathen inhabitants of the islands we had
previously visited.
Leaving Wokan on the 31st, I next visited Dobbo, a village situated
on a spit of sand five hundred yards long, extending from the north-
east side of Wama, and reducing the channel between the latter
island and Wokan to about a mile. This spit affords shelter to the
trading vessels, which anchor to the eastward or to the westward of
it, according to the monsoon, and fourteen or fifteen sheds are
erected upon it, under which they can be hauled up and repaired. It
is very difficult to enter the harbour without a pilot, as steep reefs, dry
at low water, extend a considerable distance from Wama and
Wokan, forming a narrow and crooked channel, with a depth of eight,
nine, and ten fathoms. The reefs, which are always visible in fine
weather, extend farther from Wokan than from Wama, so that the
channel lies nearest to the south shore. In the early part of the west
monsoon several brigs from Sourabaya (Java), a number of
paduakans from Macassar (Celebes), together with many other
vessels from different places, among which are many small craft
from the Ki Islands and Goram, visit this harbour, the greater part of
which are hauled up on the beach during their stay, and covered
over with sheds of atap. The traders, with the assistance of the
natives, erect houses wherein they reside and deposit their goods,
the guns belonging to their vessel being planted around it. The
traders remain here until the month of June, Dobbo, during their stay,
having the appearance of a very populous place. The traders,
immediately on their arrival, hire vessels from the inhabitants, which
they send with a portion of their crew to the more distant islands, to
purchase trepang, edible birds'-nests, and mother-of-pearl shell. The
trade is conducted with great regularity, and if differences now and
then occur, they are always put an end to by the mediation of the
Orang Kaya. The commanders of the trading vessels pay a certain
quantity of arrack and cloth as anchorage dues and ground rent, and
although the amount paid by each is small, the number of traders is
so great as to render this an important source of income to the
inhabitants. Soon after the departure of the traders Dobbo is
abandoned for the season, the old houses being burnt by the natives
that they may have to build new ones the following year, and thus
increase their gains.
This spit offers a good situation for the erection of a small fort, the
wells upon it supplying good fresh water, while the high beach is
open on both sides to the sea-breeze. According to the universal
testimony of the natives, this spot is very healthy, and although the
sea is disturbed by the number of vessels, it affords abundance of
fish. A party sent here from the brig to fish with the seine, obtained at
three hauls, a sufficient quantity of kakap (a sort of cod), and other
delicate fish, to half fill the boat.
As nothing is to be feared from the natives, I feel convinced that
were a fort to be erected on this spot it would soon become a very
prosperous trading place. At present the natives do not settle here in
great numbers, as the foreign traders do not like them to reside
among them. As soon as the traders have departed the people give
themselves up to idleness, and only commence collecting produce a
short time previous to their return. Neither do the foreign traders now
like to settle on the islands, perhaps because they do not place

Full Microeconomics 9Th Edition Michael Parkin Solutions Manual Online PDF All Chapter

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Full Microeconomics 9Th Edition Michael Parkin Solutions Manual Online PDF All Chapter

Uploaded by

Copyright:

Available Formats

Microeconomics 9th Edition Michael

Parkin Solutions Manual

Microeconomics 12th Edition Michael Parkin Solutions

Microeconomics 11th Edition Michael Parkin Solutions

Microeconomics 11th Edition Michael Parkin Test Bank

Microeconomics 12th Edition Michael Parkin Test Bank

Economics 11th Edition Michael Parkin Solutions Manual

Economics 12th Edition Michael Parkin Solutions Manual

Microeconomics 9th Edition Parkin Test Bank

Microeconomics 13th Edition Parkin Solutions Manual

Answers to the Review Quizzes

4. Is there any case for legalizing drugs?

Answers to the Problems and Applications

If a minimum wage for teenagers is set at $7 an hour,

9. The demand and supply schedules for rice

13. House Passes Increase in Minimum Wage to $7.25

14. The demand and supply schedules for tulips

Solutions to Additional Problems

You might also like