Sub : EconomicsPls answer very fast.i ll upvote correct answer . Thank YouThe figure below shows the market for water-skiing permits on Shuswap Lake in British Columbia. Every person who wishes to water ski must obtain a permit, which is valid for one day. Suppose that each water skier imposes a $4 negative externality on other people who use the lake. Price of ski permits($)20Sprivate1412X1086Dprivate181642010 20 30 40 50 60 70 80 90 100Skiers (permits) per dayOa. The socially optimal level of water skiing ispermits.b. If there is no government intervention in this market, the deadweight loss from ignoring the negative externality would be $c.Suppose the government imposes a $12 tax on suppliers of water skiing permits. Compared to social optimum, the net(Click to select) in surplus from this tax is $(Hint: The tax overcorrects for the negative externality.)

The social optimal level in economics refers to the point at which resources are allocated in a…

Answered: Price of ski permits($) 20 18 16 14 12…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Sub : Economics
Pls answer very fast.i ll upvote correct answer . Thank You

The figure below shows the market for water-skiing permits on Shuswap Lake in British Columbia. Every person who wishes to water ski must obtain a permit, which is valid for one day. Suppose that each water skier imposes a $4 negative externality on other people who use the lake.

Price of ski permits($)
20
Sprivate
14
12
X
10
8
6
Dprivate
18
16
4
2
0
10 20 30 40 50 60 70 80 90 100
Skiers (permits) per day
O
a. The socially optimal level of water skiing is
permits.
b. If there is no government intervention in this market, the deadweight loss from ignoring the negative externality would be $
c.Suppose the government imposes a $12 tax on suppliers of water skiing permits. Compared to social optimum, the net
(Click to select) in surplus from this tax is $
(Hint: The tax overcorrects for the negative externality.)

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