3. (Negative Externalities) Suppose you wish to reduce a negative externality by imposing a tax on the activity that creates that externality. On a supply-demand diagram, please show the tax needed to correct the externality if the amount of externality produced rises as output rises. Assume that the marginal private cost curve slopes upward. Negative Externalities: The Market for Electricity in the Midwest Marginal social cost $0.14 Marginal private cost 0.10 D 35 50 Millions of kilowatt- hours of electricity per month Dollars per kilowatt-hour

3. (Negative Externalities) Suppose you wish to reduce a negative externality by imposing a tax on the activity that creates that externality. On a supply-demand diagram, please show the tax needed to correct the externality if the amount of externality produced rises as output rises. Assume that the marginal private cost curve slopes upward. Negative Externalities: The Market for Electricity in the Midwest Marginal social cost $0.14 Marginal private cost 0.10 D 35 50 Millions of kilowatt- hours of electricity per month Dollars per kilowatt-hour

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 5SCQ: The federal 3mm decides to require that automobile manufacturers install new anti-pollution...

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5- Please solve this question. Thanks
7 Evaluate the different ways in which a government might be able to improve access to the housing market. Use relevant graphical analysis.
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11-The selling price of a product in Oman is higher than the price in Dubai although both products are having the same nature. Customers are buying the product from Dubai due to the price differences. What will be the effect of the customers buying the products from Dubai? (1) Due to this, appreciation in the value AED (United Arab Emirates Dirham) relative to OMR, (2) Due to this, depreciate in the value AED (United Arab Emirates Dirham) relative to OMR, (3) Product sold in Oman market will decrease and the retail price will go down, (4) Product sold in Oman market will decrease and the retail price will go up, (5) The demand for the product and prices will increase in Dubai a. (2) and (3) only b. (1), (2), (3), (4) and (5) c. (1) and (2) only d. (1), (3) and (5) only
13. Which ones correct
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5.21 explain
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4, 5