7.... P6LO532101020304050Specifically, the socially optimum quantity is [Select ]60Due to the negative externality, the socially optimal quantity would be[Select]the market equilibrium.SupplyDemandQThe figure represents the market for clothes. Firms in this market generate $2 of externalcost for each unit they produce.The market equilibrium quantity is [Select]equilibrium price is $ [Select ]and the market70

Market equilibrium occurs at the intersection of the demand and supply curves. A negative…

Answered: The figure represents the market for…

The figure represents the market for clothes. Firms in this market generate $2 of external cost for each unit they produce.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

7....

P
6
LO
5
3
2
1
0
10
20
30
40
50
Specifically, the socially optimum quantity is [Select ]
60
Due to the negative externality, the socially optimal quantity would be
[Select]
the market equilibrium.
Supply
Demand
Q
The figure represents the market for clothes. Firms in this market generate $2 of external
cost for each unit they produce.
The market equilibrium quantity is [Select]
equilibrium price is $ [Select ]
and the market
70

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32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. a O O O O O O O O O O O O O O O O O Refer to Figure 3.4 and identify the true statement. a. The original equilibrium quantity was 57. b. The demand for DVD rentals has decreased. O The below figure shows the demand and supply of DVD rentals in a city. S₁ and D₁ are the original supply and demand curves. The demand curve shifts from D₁ to D₂. c. The supply of DVD rentals has decreased. d. The new equilibrium price is $3. e. The new equilibrium quantity is 48. Icon Key Price per DVD rental ($) 5+ 4+ 3- 2.50 2+ 1 0 10 20 30 Figure 3.4 + Quantity (Number of DVD rentals) ST Di + 40 50 60 70 80 90 100 110 48 57 66