Below is the hypothetical supply and demand diagram for iron supplements in Brazil with positive externalities.1. Move $ E_1 $ to the market's equilibrium.2. Move $ E_2 $ to the socially optimal equilibrium.### Market for Iron Supplements#### Diagram Explanation:- **Axes**: - The horizontal axis represents Quantity (in thousands). - The vertical axis represents Price (in $).- **Curves**: - The **Supply Curve ($ S $)** is represented by the red line, sloping upwards. - The **Internal Demand Curve ($ D_{\text{internal}} $)** is shown by the light blue line, sloping downwards. - The **Social Demand Curve ($ D_{\text{social}} $)** is indicated by the dark blue line, also sloping downwards and positioned to the right of $ D_{\text{internal}} $, reflecting positive externalities.- **Equilibrium Points**: - $ E_1 $: Represents the market equilibrium where the internal demand ($ D_{\text{internal}} $) intersects the supply ($ S $). - $ E_2 $: Represents the socially optimal equilibrium where the social demand ($ D_{\text{social}} $) intersects the supply ($ S $).This diagram illustrates the positive externalities in the market for iron supplements, suggesting that the socially optimal level of consumption $ (E_2) $ is greater than the market equilibrium $ (E_1) $.

The market equilibrium is at D internal=Sso moving the point to the intersection of the S=D internal…

Answered: Below is the hypothetical supply and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Describe social benefits and social costs in externalities.
ģi Refer to the table below, which presents information on a market that provides positive externalities on society. Private marginal benefit Marginal cost $300,000 $340,000 $310,000 $330,000 $320,000 $320,000 $330,000 $310,000 $340,000 $300,000 $350,000 $290,000 Calculate the quantity that would be produced if society did not incorporate the social marginal benefits of this good or service. Type your answer... Quantity 6,000 7,000 8,000 9,000 10,000 11,000 F1 a 2 W JAN X Q 18 F2 # 3 20 F3 F $ 4 F4 R % 5 F5 T MacBook Air A 6 F6 Y & 887 stv F7 U * 00 8 FB O ( 9 Private+social marginal benefit $360,000 $350,000 $340,000 $330,000 $320,000 $310,000 F9 1 W 0 F10 Aa zoom P F11 Submit F12 = IT ľ
Demand BA Quantity Refer to Externality graph above. Point A is the current equilibrium level of output of this product and point B is the socially optimal level of output for the society. S is the supply curve that includes private costs. St is the supply curve that includes public costs. The graph indicates that there is (arc): O a. positive externalities from product production. O b. spillover costs from the production of this product. Oc. spillover benefits to the production of this product. O d. an underallocation of resources to product production. Price %24
2:28 PM Sun Nov 20 ☎77% + gnment... Submit
1. Externalities - Definition and examples An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is adverse, it is called a v externality. The following graph shows the demand and supply curves for a good with this typé of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good. Adjust one or both of the curves to reflect the presence of the externality. If the social cost of producing the good is not equal to the private cost, then you should drag the supply curve to reflect the social costs of producing the good; similarly, if the social value of producing the good is not equal to the private value, then you should drag the demand curve to reflect the social value of consuming the good.
A market with negative externalities will tend to compared to a market producing the socially optimal output. O overproduce and sell at a lower price O overproduce and sell at a higher price underproduce and sell at a higher price O underproduce and sell at a lower price
The effect of external costs on the efficient level Consider the market for steel. Suppose that a steel manufacturing plant dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the plant. Producing an additional ton of steel imposes a constant external cost of 5330 per ton. The foliowing graph shows the demand (private value) curve and the supply (private cost) curve for steel.
Exhibit 30-2 Price and Cost 0,0₂ b) ABE. Refer to Exhibit 30-2. If the exhibit represents a positive externality situation, the private cost of expanding output from Q₁ to Q₂ is the area of a) Q₁CBQ2. Cuantity c) Q₁AEQ₂- d) Q₁ABQ₂.
12. Give four (4) economic activities that generate both positive and negative externalities?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
I got this wrong. I chose option D. What is the correct one and why?
D Question 10 Which of the following is an example of a negative externality? O A person buys a car that is in need of repairs O A new restaurant's success causes another restaurant to go out of business O all of above O A worker is injured on the job O A new hotel ruins the view of the ocean for a few homeowners

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