### Image Transcription for Educational Use#### Description of DiagramThe diagram is a supply and demand graph depicting both internal and social supply curves alongside an internal demand curve. The graph includes the following key elements:- **Axes:** - The vertical axis represents Price. - The horizontal axis represents Quantity.- **Curves:** - **S\_Social** (red line): Social supply curve, indicating adjustments for externalities. - **S\_Internal** (blue line): Internal supply curve without external adjustments. - **D\_Internal** (blue line): Internal demand curve.- **Equilibrium Points:** - **Point A**: Intersection of S\_Internal and D\_Internal at a price of $5.00 and quantity of 3,500 units. - **Point B**: Intersection of S\_Social and D\_Internal at a price of $6.00 and quantity of 3,000 units. - **Point C**: Situated directly above point A on S\_Social at a price of $7.00.#### Question and Options- **Prompt:** "In the market shown in the diagram above, there is a __________ externality." **Select one:** - a. negative production - b. negative consumption - c. positive production - d. positive consumptionThis setup examines the type of externality present in the market and its impact on supply and demand equilibrium.

Answered: Price Ssocial Sinternal в $7.00 $6.00…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Sub : EconomicsPls 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.
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18. The next few questions are about this generic market with a negative consumption externality. Fill in the welfare table below with the areas associated with each welfare measure. aslhee or batoob A P. 1 F H. G MSB Q, Qi tax that leads to Qo CS PS tax revenue externality total surplus gqg 53 2Abbo20 (p re 9 boagns exrsLU ednsto 75 beLapor ent
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C. How would you calculate: (1) the total amount of subsidy incurred by the government to socially efficient allocate?
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Price Ssocial Sinternal в $7.00 $6.00 $5.00 $4.00 D Dinternal 3,000 3,500 Quantity In the market shown in the diagram above, there is a externality. Select one: a. negative production b. negative consumption c. positive production d. positive consumption