Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 11, Problem 5IAPA
To determine
The graph showing
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(Figure: Softella) Refer to the figure. The figure shows a market for medicated tissues. Assume that the only use for these tissues
is to wipe and clean one's hands, thus preventing germs from spreading to other people. What is the dollar amount of the
external benefit (per box) that is created by the use of this product?
Supply
$16
12
Social value
Demand
Quantity of boxes of
softella medicated
500
700
tissues
Select one:
a. $16
b. $12
c. $24
d. $8
1. For each of the goods listed below, discuss whether the
good is likely to entail an external cost or an external
benefit. Additionally, explain if the market is likely to
produce more or less than the social optimal.
a. Vaccinations
b. Cigarettes
c. Antibiotics
d. Sriracha sauce
Chapter 11 Solutions
Foundations of Economics (8th Edition)
Ch. 11 - Prob. 1SPPACh. 11 - Prob. 2SPPACh. 11 - Prob. 3SPPACh. 11 - Prob. 4SPPACh. 11 - Prob. 5SPPACh. 11 - Prob. 6SPPACh. 11 - Prob. 7SPPACh. 11 - Prob. 8SPPACh. 11 - Prob. 9SPPACh. 11 - Prob. 10SPPA
Ch. 11 - Prob. 1IAPACh. 11 - Prob. 2IAPACh. 11 - Prob. 3IAPACh. 11 - Prob. 4IAPACh. 11 - Prob. 5IAPACh. 11 - Prob. 6IAPACh. 11 - Prob. 7IAPACh. 11 - Prob. 8IAPACh. 11 - Prob. 9IAPACh. 11 - Prob. 1MCQCh. 11 - Prob. 2MCQCh. 11 - Prob. 3MCQCh. 11 - Prob. 4MCQCh. 11 - A renewable common resource is used sustainably if...Ch. 11 - Prob. 6MCQCh. 11 - Prob. 7MCQCh. 11 - When ITQs are assigned, the market price of an ITQ...
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