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 $4 negative externality on other people who use the lake. Price of ski permits ($) Sprivate 14 12 X 10 8 6 4 D private 10 20 30 40 50 60 70 80 90 100 20 18 6 16 2 0 Skiers (permits) per day a. The socially optimal level of water skiing is b. If there is no government intervention in this market, the deadweight loss from ignoring the negative externality would be $ permits. 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 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 $4 negative externality on other people who use the lake. Price of ski permits ($) Sprivate 14 12 X 10 8 6 4 D private 10 20 30 40 50 60 70 80 90 100 20 18 6 16 2 0 Skiers (permits) per day a. The socially optimal level of water skiing is b. If there is no government intervention in this market, the deadweight loss from ignoring the negative externality would be $ permits. 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.)

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

Hi hlo Expert Hand written solution is not allowed.
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.
Help plz graph plz 3 8
12. Give four (4) economic activities that generate both positive and negative externalities?
3. Efficiency in the presence of externalities Roses confer many external benefits on society: the beauty they add to a room or garden, the wonderful aroma they give off, and so on. Therefore, the market equilibrium quantity of roses is not equal to the socially optimal quantity. The following graph shows the demand for roses (their private value), the supply of roses (the private cost of producing them), and the social value of roses (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.
Image not accepted. Only type writing allow....don't use pepar work then I will give u down thamb ?
Answer this for me mate. Much appreciated.
I got this wrong. I chose option D. What is the correct one and why?
3 Join: 095944 radebook Assessment 12.2 Homework Due on December 5, 2023 RO a Vrunula Homework Unanswered Due Dec 5th, 11:59 PM Based on the graph and assuming no externalities, the deadweight loss in this market is approximately equal to: b $500. $10 $8.50 $1,000. $1,500. d $3,000. $5 5/10 answered 2,400 3,000 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Unanswered. 2 attempts left MR MC ATC Q Search Demand Quantity Debora Open In Reading View 7 SULIR
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