Use the table below to answer the questions: Quantity Supplied (Private Supplied (Social Cost only) 12,000 14,000 17,000 20,000 24,000 Quantity Quantity Demanded Price 19,000 14,000 9000 5000 1000 $50 $55 $60 $65 $70 Cost) 6000 7500 9000 11,000 14,000 (a) Find the equilibrium price, assuming sellers ignore negative externalities. (b) Find the equilibrium quantity, assuming sellers ignore negative externalities. (c) Find the optimal price, including external costs.

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information
Section: Chapter Questions
Problem 8QP
icon
Related questions
Question
Use the table below to answer the questions:
Quantity
Supplied (Private Supplied (Social
Cost only)
12,000
14,000
17,000
20,000
24,000
Quantity
Quantity
Demanded
Price
19,000
14,000
9000
5000
1000
$50
$55
$60
$65
$70
Cost)
6000
7500
9000
11,000
14,000
(a) Find the equilibrium price, assuming sellers ignore negative externalities.
(b) Find the equilibrium quantity, assuming sellers ignore negative externalities.
(c) Find the optimal price, including external costs.
(d) Find the optimal quantity, including external costs.
Transcribed Image Text:Use the table below to answer the questions: Quantity Supplied (Private Supplied (Social Cost only) 12,000 14,000 17,000 20,000 24,000 Quantity Quantity Demanded Price 19,000 14,000 9000 5000 1000 $50 $55 $60 $65 $70 Cost) 6000 7500 9000 11,000 14,000 (a) Find the equilibrium price, assuming sellers ignore negative externalities. (b) Find the equilibrium quantity, assuming sellers ignore negative externalities. (c) Find the optimal price, including external costs. (d) Find the optimal quantity, including external costs.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
Economics
ISBN:
9781285635101
Author:
MCEACHERN
Publisher:
Cengage
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning