Using the blank graph below, draw and label all the curves needed to show a negative externality and, show on your graph the change in total social costs that occurs when moving from the market equilibrium to the social equilibrium. Make sure to clearly identify and label which quantity is the market equilibrium (QME) and which is the social equilibrium (QSE). Please use a straight-edge when drawing.
Using the blank graph below, draw and label all the curves needed to show a negative externality and, show on your graph the change in total social costs that occurs when moving from the market equilibrium to the social equilibrium. Make sure to clearly identify and label which quantity is the market equilibrium (QME) and which is the social equilibrium (QSE). Please use a straight-edge when drawing.
Chapter19: Externalities And Public Goods
Section: Chapter Questions
Problem 19.2P
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Problem 2: use the following to complete the graph.
![Problem 2
Using the blank graph below, draw and label all the curves needed to show a negative
externality and, show on your graph the change in total social costs that occurs when
moving from the market equilibrium to the social equilibrium. Make sure to clearly identify and
label which quantity is the market equilibrium (QME) and which is the social equilibrium (QSE).
Please use a straight-edge when drawing.
550
500
450
400
350
300
250
200
150
100
50
0
0
75
100
125
150
Marijuana (lbs)
175
200
225
250
275](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2acca9a2-9eb2-4cbe-a7d0-940199f6056b%2F6a13fb1c-83c8-4060-8b0e-a35115465e29%2Fmgz1u8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 2
Using the blank graph below, draw and label all the curves needed to show a negative
externality and, show on your graph the change in total social costs that occurs when
moving from the market equilibrium to the social equilibrium. Make sure to clearly identify and
label which quantity is the market equilibrium (QME) and which is the social equilibrium (QSE).
Please use a straight-edge when drawing.
550
500
450
400
350
300
250
200
150
100
50
0
0
75
100
125
150
Marijuana (lbs)
175
200
225
250
275
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