The graph depicts the market for a good that creates a negative externality. Move the triangle labeled "DWL" to illustrate thedeadweight loss associated with the market equilibrium quantity.Supply (social)DWLSupply (internal)DemandQuantityPrice

Qs is the socially optimal quantity level that occurs at the intersection point of the Supply…

Answered: The graph depicts the market for a good…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The Cemex plant in Davenport produced cement. The production of cement created dust which traveled through the air and landed on the nearby area. Testing at an elementary school and fire department near the plant showed toxic levels of Chromium 6 resulting from the dust. Using the concept of externalities and the graph below, explain what kind of externality this event created and the effects this had on economic efficiency. Be sure to indicate any differences between market price and quantity for cement and the efficient price and quantity.
The supply and demand conditions facing a firm that makes widgets and generates a negative externality by dumping a highly toxic sludge in a nearby river is given in the table below. Price Quantity Demanded Quantity Supplied without Paying Social Costs Quantity Supplied after Paying Social Costs 100 0 120 75 80 10 100 50 55 30 90 30 40 55 85 25 30 80 80 20 20 100 65 15 The equilibrium price and quantity when social costs are taken into account are Question 12 options: Price = $55, Quantity = 30 Price = $40, Quantity = 55 Price = $30, Quantity = 20 Price = $30, Quantity = 80
The market for plasticans is perfectly competitive. Market Supply is given by Q=8P and Market Demand is given by Q=342-2P. Each extra unit of plastican produced imposes a negative externality of $9. What is the (absolute value of) Deadweight Loss due to the externality? Enter a number only, drop the $ sign. Do NOT include a negative sign. 48.6
The market for pencils perfectly competitive without externalities. Market demand is Q=364-2P and Market Supply is P=2Q+19. What is the market Consumer Surplus and the Producer Surplus?
Use the graph attached What is the dead weight loss that results from this externality. a) QE - Q* b) Pc- PE c) Pc- Pp d) (Pc-Pp) * QE e) (Pc-Pp) * (QE-Q*) x ½
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Use a supply and demand graph to show a good which should be illegal owing to it's negative externality.
Consider the above graph. Is there an externality present in this market? If so, what kind? No, there is no externality. Yes, a negative externality. Yes, a positive externality.
The following graph represents the market for high-emissions cars. Answer this question assuming that the externality is not internalised. Which quantity is socially optimal (i.e. what is the efficient quantity)? What is the deadweight loss generated by the externality?
Address the question in the image.
The graph shows the marginal private benefit from a veterinary degree and the marginal cost of obtaining it. The marginal external benefit is $8,000 per veterinary graduate per year. Suppose the government decides to subsidize private veterinary schools. Draw the marginal social benefit curve. Label it MSB. Draw the supply curve when the government provides a subsidy that achieves the efficient number of students. Label it S - MC. Draw an arrow to show the subsidy per student at the efficient number of students. The subsidy that achieves the efficient number of students is $ student. >>> Remember that the quantity given on the y-axis is in thousands of dollars. Oll 70 y Selected: none & 7 O * 8 per 0 * ✓ O 9 40- 32- 24- 16- 8- 0- 0 Price and cost (thousands of dollars) 4 F 10 40 30 Students (thousands per year) >>> Draw only the objects specified in the question. Delete Clear Р 20 +S=MC ? D=MB 50 Next 18 X SU 10
Offer an example of a good or service with a negative externality. What is the externality of the good or service you mentioned?

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The graph depicts the market for a good that creates a negative externality. Move the triangle labeled "DWL" to illustrate the deadweight loss associated with the market equilibrium quantity.