Suppose that a candy maker owns a building and is renting part of the building's space to a library. further suppose that because the candy maker is the owner, he has the right to make noise during the day while he makes candy. while the library cannot insist on a quiet environment, it could move to a quieter building. however, rent in the next best building is $300/month more than rent in the noisy building. the candy maker can adopt a new technology that eliminates the noise for $225/month. given this situation, can the library find a private solution with the candy maker that will make both better off?

Feedback systems do not always involve negative feedback. economic inflation, which is evidenced by continually rising prices, is a positive feedback system. a positive feedback control system, as shown on the right, adds the feedback signal to the input signal, and the resulting signal is used as the input to the process. a simple model of the price-wage inflationary spiral is shown on the right. add additional feedback loops, such as legislative control or control of the tax rate, to stabilize the system. it is assumed that an increase in workers’ salaries, after some time delay, results an increase in prices. under what conditions could prices be stabilized by falsifying or delaying the availability of cost-ofliving data? how would a national wage and price economic guideline program affect the feedback system?