Supply curves for the production of oil in Sanaton are shown in the diagram below. Supply based on both private and private+social costs is shown. Answer the following questions based on thediagram.Supply (Private + Social)Supply (Private)VE(16000 $70(22000,$59)DemandPriceQuantityWhat is the equilibrium quantity when negative externalities of producing oil are not taken into account?What is the equilibrium price when negative externalities are not taken into account?

When the negative externality is not taken into consideration then the firm's are supplying more…

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What is the equilibrium price when negative externalities are not taken into account? Lan

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

Supply curves for the production of oil in Sanaton are shown in the diagram below. Supply based on both private and private+social costs is shown. Answer the following questions based on the
diagram.
Supply (Private + Social)
Supply (Private)
VE
(16000 $70
(22000,$59)
Demand
Price
Quantity
What is the equilibrium quantity when negative externalities of producing oil are not taken into account?
What is the equilibrium price when negative externalities are not taken into account?

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