Electric cars (ECS) are an important part of meeting global goals on climate change ECs have emissions up to 33% lower than diesel cars. However, In Europe, electric cars account for only 0 65% of all new sales in 2020 Suppose the marketfor ECs is perfectly competitive. The market demand for ECs is given by p= 15 - 20 and the market supply for ECsis given by p 4Q The marginal social benefit of adopting ECs is given by p = 15-Q To encourage the purchase of ECs, the government decides to subsidise the consumers The optimal level of subsidy is %3D for the market to reach a socially optimal equilibrium.

Electric cars (ECS) are an important part of meeting global goals on climate change ECs have emissions up to 33% lower than diesel cars. However, In Europe, electric cars account for only 0 65% of all new sales in 2020 Suppose the marketfor ECs is perfectly competitive. The market demand for ECs is given by p= 15 - 20 and the market supply for ECsis given by p 4Q The marginal social benefit of adopting ECs is given by p = 15-Q To encourage the purchase of ECs, the government decides to subsidise the consumers The optimal level of subsidy is %3D for the market to reach a socially optimal equilibrium.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

50 – QD, and the supply of anchovy Suppose that demand for anchovy pizza is given by PD pizza is given by PS = QS. Anchovy pizza smells bad. The bad smell imposes an external cost on anyone near the pizza equal to $5 per pizza. What is the formula for the marginal cost to society of anchovy pizza? O 55 - Q O 5 + Q O Q- 5 O 45 - Q
Parks confer many external benefits on society: open space, trees that reduce pollution, and so on. Therefore, the market equilibrium quantity of parks is not equal to the socially optimal quantity. The following graph shows the demand for parks (their private value), the supply of parks (the private cost of producing them), and the social value of parks, including both the private value and external benefits. Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socially optimal quantity.
Analyze the social costs of alcohol consumption
Consider a manufactured good whose production process generates pollution. The demand for the product is Q=100-3P. The market supply function is Q=P. The marginal external cost is MEC=2Q. What is the emissions tax that needs to be imposed to achieve the social optimum? Illustrate on graph What is the economic incidence of this emissions tax? In other words, what proportion of this tax will be paid by producers of this product and what proportion of the tax will be paid by consumers?
(12) Consider a market with social marginal benefit (quantity demanded) given by SMB = 600 – Q and private marginal cost (quantity supplied) given by PMC = Q. Social marginal cost is given by SMC = 200 + Q. Assume SMB = PMB. (a) Graph these SMB, SMC, and PMC curves. (b) Find the market equilibrium price and quantity. (c) Find the socially optimal equilibrium price and quantity.
Need details solutions
In the market for travel, what is true about the relationship between the market equilibrium (n) and the socially optimal equilibrium (nº) amount of travel when there is zero negative externality? The market equilibrium amount of travel is greater than the socially optimal amount of travel The market equilibrium amount of travel is less than the socially optimal amount of travel The market equilibrium amount of travel is equal to socially optimal amount of travel
Early settlers in the town of Dry Gulch drilled wells to pump as much water as they wanted from the single aquifer beneath the town. (An aquifer is an underground body of water.) As more people settled in Dry Gulch, the aquifer level fell and new wells had to be drilled deeper at higher cost. The residents of Dry Gulch will overuse water relative to the social optimum because Multiple Choice each resident will fail to adequately consider the external cost of his or her own water use water is a scarce resource each resident will fail to adequately consider the external benefit of his or her own water use the marginal cost of water is increasing
Please all solve the question
When equilibrium output in a competitive market is at the socially efficient level: a) only market values are incorporated into marginal benefits to consumers and marginal costs of production. b) net social value is as large as possible. c) the marginal benefit to consumers may exceed or be less than the marginal cost of production. d) total willingness to pay is as large as possible.
I Price and cost (thousands of dollars per student) 20 16 12 8 0 200 A) 0 students; 400 students B) 600 students; 600 students C) 400 students; 600 students D) 600 students; 400 students E) 400 students; 400 students S = MC MSB MB 400 600 800 1,000 Quantity (students per year) 35) 35) The figure above shows the market for private elementary school education in Chicago. There is no external cost of private elementary education. If the government does not intervene in this market, the equilibrium number of students being privately educated is and the efficient quantity is
The market for plasticans is perfectly competitive. Market Supply is givenby Q=5P and Market Demand is given by Q=373-3P. Each extra unit ofplastican produced creates a positive externality of $6. Implement theoptimal Pigouvian tax/subsidy that implements the efficient outcome.What is the Consumer Surplus in the equilibrium with the tax/subsidy?