would this look like on the graph.   sd1 is long run domestic supply curve sd2 dometic supply curve Pw1 observed world price Pw2 includes vulnerability premium  Pw3 adds in the per unit climate change damages

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Pigou tax on oil has no impact on global carbon emission from oil because other countries do not pay it. What would this look like on the graph.  

sd1 is long run domestic supply curve

sd2 dometic supply curve

Pw1 observed world price

Pw2 includes vulnerability premium 

Pw3 adds in the per unit climate change damages

$/Unit
Domestic Demand
S d2
d1
w3
Pw2
P,
w1
Quantity
А В
Figure 7.2 The National Security Problem
Transcribed Image Text:$/Unit Domestic Demand S d2 d1 w3 Pw2 P, w1 Quantity А В Figure 7.2 The National Security Problem
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