Specialized electronic batteries, such as those for laptops, are hard to dispose of safely, yielding excess pollution when one gets thrown away. Suppose that producing these batteries creates a social cost of $150 per unit. The accompanying diagram depicts the market for these batteries in which these social costs are not internalized. Please adjust the appropriate curves to represent the market if the social costs are internalized. 1,000 950 900 850 800 750 700 Price 650 600 550 500 450 400 350 300 250 200 150 100 50 0 0 Market for Laptop Batteries Supply Demand 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Quantity

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Specialized electronic batteries, such as those for laptops,
are hard to dispose of safely, yielding excess pollution when
one gets thrown away. Suppose that producing these
batteries creates a social cost of $150 per unit. The
accompanying diagram depicts the market for these batteries
in which these social costs are not internalized. Please adjust
the appropriate curves to represent the market if the social
costs are internalized.
1.000
950
900
850
800
750
700
650
600
550
8500
500
AEO
450
400
350
300
250
200
150
100
50
0
0
Market for Laptop Batteries
1,000 2,000 3,000 4,000 5,000
Quantity
Supply
Demand
6,000 7,000 8,000
Transcribed Image Text:Specialized electronic batteries, such as those for laptops, are hard to dispose of safely, yielding excess pollution when one gets thrown away. Suppose that producing these batteries creates a social cost of $150 per unit. The accompanying diagram depicts the market for these batteries in which these social costs are not internalized. Please adjust the appropriate curves to represent the market if the social costs are internalized. 1.000 950 900 850 800 750 700 650 600 550 8500 500 AEO 450 400 350 300 250 200 150 100 50 0 0 Market for Laptop Batteries 1,000 2,000 3,000 4,000 5,000 Quantity Supply Demand 6,000 7,000 8,000
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