Question

Ask a Qu | (5 Aplia: Stu |中Outlooks Mail-k1 ,, Microsof, I + v M Action re Cengage l otos- Micro NA 6.1.PNG Price f high emissionS vehides 3 Social Value o 8, 8Quantiy high 0 emissions Vehicles

1 What is the price-quantity combination determined by the market?

2 What is the private benefit of the last unit traded in the market?

3 What is the private cost of the last unit traded in the market?

4 What is the social value of the last unit traded in the market?

5 What is the social cost of the last unit traded in the market?

6 Which quantity is socially optimal (i.e. what is the efficient quantity)?

7 What is the deadweight loss generated by the externality?

Answer 1

1 p3Q3 determined by intersection of D and s

2 p3 as shown by value on demand curve at equilbrium

3 p1 see corresponding vertical Pont on Social value curve

4 Q2 determined by intersection of D and social value curve

5 options are not visible here. Any way I am required to answer only 4 parts according to HOMEWORKLIB POLICY but still would have loved to answer this part also