Common law and economics - Case Study Example

Task: Law and Economics Common law is law that judges and court stakeholders develop through precedential decisions of courts. This is unlike statutes that legislative process bestows upon the judicial systems. Civil law is a legal system that thrives on a codified framework upon individuals can refer to while making legal decisions. Civil law builds from abstractions and proceeds into general principles that form substantive rules. This is contrary to common law that creates procedural rules.

Civil law is open to flexibility. This is because changing scenarios necessitate the dynamism in laws to address contemporary issues. This is unlike common law whose facts do not change as decisions are made from a distinct basis. Besides, in a common law proceeding, a trial is usually a unique hearing lasting for a comparatively short period. On the other hand, common law proceedings occur as investigation of facts that rely upon a pleading file. 2 Meals Excursions This means that the customer can either only take 10 meals or 5 meals while using the full budget on either meals or excursions only.

The couple cannot take 9 meals and 3 excursions because this exceeds the budget constraint by $ 500. 3 Cigarettes are harmful products to individuals’ lives. In addition, they are highly addictive products. This means that consumers cannot easily develop the initiative to stop the consumption of cigarettes. The government has a stream of policies that it enacts to eliminate the consumption of cigarettes among citizens. In this sense, it introduces a disincentive in the form of a tax. A tax increases the price of a good.

The higher price, therefore, reduces demand of cigarettes. Vaccination is a program that ensures the population stays healthy. However, citizens cannot easily develop the initiative to vaccinate children because there are no immediate observable benefits of the same. Furthermore, having unvaccinated children in a country may complicate the health of future generations. Education is an expensive process for the government. The government strives to cut down on the costs of education by incentivizing college students to tutor low-income children.

In this sense, it bridges the gap of education between students from low-income families and students from rich families. Pollution is a factor that creates a negative externality in an economy. Without exercising a tax, the firms do not cater for the social costs they create to the society. In this view, an air population tax performs two functions. To begin with, it ensures that polluting firms cater for the costs they create to the environment. In addition, it disincentivizes polluting firms from increasing the amounts of their pollution.

4 It is essential to examine the need of individuals while making laws. Needs manifest the political, economic, and social lives of individuals in a community. In turn, the law acts as a mechanism through which the society meets such needs. The making law should also examine the history of given people and place. This is essential in drawing the problems that the law needs to solve. Law should examine its retributive nature. In this case, the law ensures that it has the right mechanism to ensure its compliance.

In addition, law should observe simplicity. This eases the interpretation of legal codes and simplifies its use in different scenarios. 5 Demand and supply diagram for I-phones If wages double, consumers will possess more income. This increases demand thereby pushing prices up the curve. On the other hand, supply increases because of increased prices. This occurs in the short-run is because traders seek to source more revenues from the market. In addition, the increased prices disincentivize consumers from buying more goods thus the demand reduces.

In the long run, the balance between prices and quantity is restored as the curve moves back to the equilibrium values. It is crucial for the government to control prices changes in wages highly affect prices. This could hurt consumer purchasing power as I-phones become unaffordable. It is fair for the government to set a price ceiling below the new equilibrium because such equilibrium only shows the temporary changes in the economy. In the short-run, the producers of I-phone benefit at the expense of consumers.

6 Opportunity cost can be measured either qualitatively or quantitatively. In quantitative terms, the opportunity cost of taking this course is $ 200, 000. 7 At equilibrium, Quantity demanded=Quantity supplied Qd = 75 - .5P=Qs = 24 + P 75-0.5p=24+p 75-24=p+0.5p 51=1.5p P=34 Q (Equilibrium quantity) =24+34=58, 000 of shirts per year 8 a. Lords Abinger appealed the judgment. b. Davies won the case. c. The judge ruled that although Davies was negligent in leaving the donkey on the road, Mann had the capacity to avoid running over the donkey.

This is referred to as contributory negligence (Cooter and Ulen 67). Works cited Cooter, Robert, and Thomas Ulen. Derecho Y Economia/ Law and Economy. Fondo De Cultura Economica USA, 2009. Print.