Imagine a pasture in a small town with grazing sheep owned by several farmers. Every farmer profits by increasing the number of
sheep he has on the pasture. However, the pasture can hold only so many sheep before it runs out of grass for the sheep to eat. If that happens, the sheep would starve. If the sheep starve, it would hurt the town's economy. What government action could support the town's economy and ensure that there are not too many sheep on the pasture? Tax the grain used to feed the sheep
Tax the use of the common pasture
Ban farmers from putting sheep in the pasture
Set a minimum price for wool
If your thinking logically then you would want to tax the use of the common pasture. Doing that would limit the amount of sheep in the pasture itself. Because the number of sheep go down then the sheep still there will have an abundance of food. It can't be number 3 and I don't think its 1 so using my logic it would be 2. Hope this helped!
