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 only private costs are taken into account are Question 2 options: Price = $55; Quantity = 30 Price = $40; Quantity = 55 Price =$30; Quantity = 20 Price = $30; Quantity = 80
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 only private costs are taken into account are Question 2 options: Price = $55; Quantity = 30 Price = $40; Quantity = 55 Price =$30; Quantity = 20 Price = $30; Quantity = 80
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 42P: Table 12.12, shows the supply and demand conditions for a firm that will play trumpets on the...
Related questions
Question
The
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
Question 2 options:
Price = $55; Quantity = 30 |
|
Price = $40; Quantity = 55 |
|
Price =$30; Quantity = 20 |
|
Price = $30; Quantity = 80 |
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