uppose that we are considering the market for windmills. The private demand for electric cars is given buy: Qd = 160 − 2? And the private supply of electric cars is given by: Qs = p − 20 Suppose also that electrci cars produce a positive externality, with a Marginal Economic Benefit of $30 per unit. 5. What would be the private market equilibrium (p* & Q*)? 6. What is the socially optimal equilibrium (p* & Q*)? 7. What is Producer Surplus and Consumer Surplus in the private market equilibrium? 8. What is the increase in Total Surplus from moving from the private market equilibrium to the socially optimal equilibrium?
uppose that we are considering the market for windmills. The private demand for electric cars is given buy: Qd = 160 − 2? And the private supply of electric cars is given by: Qs = p − 20 Suppose also that electrci cars produce a positive externality, with a Marginal Economic Benefit of $30 per unit. 5. What would be the private market equilibrium (p* & Q*)? 6. What is the socially optimal equilibrium (p* & Q*)? 7. What is Producer Surplus and Consumer Surplus in the private market equilibrium? 8. What is the increase in Total Surplus from moving from the private market equilibrium to the socially optimal equilibrium?
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 10PAE
Related questions
Question
uppose that we are considering the market for windmills. The private
given buy:
Qd = 160 − 2?
And the private supply of electric cars is given by:
Qs = p − 20
Suppose also that electrci cars produce a positive externality, with a Marginal Economic Benefit of
$30 per unit.
5. What would be the private
6. What is the socially optimal equilibrium (p* & Q*)?
7. What is
8. What is the increase in Total Surplus from moving from the private market equilibrium
to the socially optimal equilibrium?
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