Question

Honey bees kept by beekeepers pollinate flowers and plants nearby--not just those owned by the beekeeper--promoting growth of plants, grasses, and trees. The graph below shows the market for honey bees. In the graph below, reposition the Social P & Q point to indicate the socially optimal price and quantity of honey bees. Provide your answer below: Price Social P& Q (10.18) € Suobby

Answer 1

Issupply SE (15,10) 10 MSB /. ^ MPB . । The ie social p and Q point is at point E Price=10 , Quantity (Q) = 15 social optimal Condition is that where MSB intersect with supply. MSB = supply, which is at point E E = Social Equilibrium point