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Here, we try to model the welfare implications of the statement "when the producers of fossil fuels don't bear the cost of the damage their emissions of greenhouse cour go to the fakt be the quantity of falls and Pits price. Assume that the social curves (where re Intersect at the indicated points on the previous graphs For example, if the social value is above the private value, the social value crosses the private cost curve at 33. Price (1. P1 2. P23. P34. None of the options) and quantity (1.12.23.34.f the f the options) Under the scenario described in the statement this equilibrium would lead to a deadweight loss equal to the orange area in the (1. Top left 2. Top right 3. Bottom lett 4. Bottom right 5. none of the options) p The socially optimal quantity is (1.12.23. 34. None of the above). The article argues that to internalize the externality fully, the government could (1. Tax: 2. Subsidize 3. Neither tax or b) this market by an amount equal to (1. P12. F23.3-p 24. None of the options). Under the policy, the price paid by the pulse (1.12.23.34. None of the above) such that the consumer surplus would now be given by the area (1.42. B+ (3.D 4. None of the above), while the price received by the sellers would be (1. P12. P23. P34. None of the options) such that the producer's surplus would now be given by the area (1.A 2.B+C3.D4. None of the options). Such a tax exemplifies (1.Command and control 2. Market baded) government policy that (1. Increases 2. Decreases 3. Neither increases nor decreases) total welfare A p3 B p2--- C - H; Demand (private value) p1 D - Supply (private cost) E 91 q2 q3 Demand (private value) Supply (private cost)

Here, we try to model the welfare implications of the statement "when the producers of fossil fuels don't bear the cost of the damage their emissions of greenhouse cour go to the fakt be the quantity of falls and Pits price. Assume that the social curves (where re Intersect at the indicated points on the previous graphs For example, if the social value is above the private value, the social value crosses the private cost curve at 33. Price (1. P1 2. P23. P34. None of the options) and quantity (1.12.23.34.f the f the options) Under the scenario described in the statement this equilibrium would lead to a deadweight loss equal to the orange area in the (1. Top left 2. Top right 3. Bottom lett 4. Bottom right 5. none of the options) p The socially optimal quantity is (1.12.23. 34. None of the above). The article argues that to internalize the externality fully, the government could (1. Tax: 2. Subsidize 3. Neither tax or b) this market by an amount equal to (1. P12. F23.3-p 24. None of the options). Under the policy, the price paid by the pulse (1.12.23.34. None of the above) such that the consumer surplus would now be given by the area (1.42. B+ (3.D 4. None of the above), while the price received by the sellers would be (1. P12. P23. P34. None of the options) such that the producer's surplus would now be given by the area (1.A 2.B+C3.D4. None of the options). Such a tax exemplifies (1.Command and control 2. Market baded) government policy that (1. Increases 2. Decreases 3. Neither increases nor decreases) total welfare A p3 B p2--- C - H; Demand (private value) p1 D - Supply (private cost) E 91 q2 q3 Demand (private value) Supply (private cost)

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter22: Frontiers Of Microeconomics
Section: Chapter Questions
Problem 6PA
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Here, we try to model the welfare implications of the statement "when the producers of fossil fuels don't bear the cost of the damage their emissions of greenhouse cour go to the fakt be the quantity of falls and Pits price. Assume that the social curves (where re Intersect at the indicated points on the previous graphs For example, if the social value is above the private value, the social value crosses the private cost curve at 33. Price (1. P1 2. P23. P34. None of the options) and quantity (1.12.23.34.f the f the options) Under the scenario described in the statement this equilibrium would lead to a deadweight loss equal to the orange area in the (1. Top left 2. Top right 3. Bottom lett 4. Bottom right 5. none of the options) p The socially optimal quantity is (1.12.23. 34. None of the above). The article argues that to internalize the externality fully, the government could (1. Tax: 2. Subsidize 3. Neither tax or b) this market by an amount equal to (1. P12. F23.3-p 24. None of the options). Under the policy, the price paid by the pulse (1.12.23.34. None of the above) such that the consumer surplus would now be given by the area (1.42. B+ (3.D 4. None of the above), while the price received by the sellers would be (1. P12. P23. P34. None of the options) such that the producer's surplus would now be given by the area (1.A 2.B+C3.D4. None of the options). Such a tax exemplifies (1.Command and control 2. Market baded) government policy that (1. Increases 2. Decreases 3. Neither increases nor decreases) total welfare
Transcribed Image Text:Here, we try to model the welfare implications of the statement "when the producers of fossil fuels don't bear the cost of the damage their emissions of greenhouse cour go to the fakt be the quantity of falls and Pits price. Assume that the social curves (where re Intersect at the indicated points on the previous graphs For example, if the social value is above the private value, the social value crosses the private cost curve at 33. Price (1. P1 2. P23. P34. None of the options) and quantity (1.12.23.34.f the f the options) Under the scenario described in the statement this equilibrium would lead to a deadweight loss equal to the orange area in the (1. Top left 2. Top right 3. Bottom lett 4. Bottom right 5. none of the options) p The socially optimal quantity is (1.12.23. 34. None of the above). The article argues that to internalize the externality fully, the government could (1. Tax: 2. Subsidize 3. Neither tax or b) this market by an amount equal to (1. P12. F23.3-p 24. None of the options). Under the policy, the price paid by the pulse (1.12.23.34. None of the above) such that the consumer surplus would now be given by the area (1.42. B+ (3.D 4. None of the above), while the price received by the sellers would be (1. P12. P23. P34. None of the options) such that the producer's surplus would now be given by the area (1.A 2.B+C3.D4. None of the options). Such a tax exemplifies (1.Command and control 2. Market baded) government policy that (1. Increases 2. Decreases 3. Neither increases nor decreases) total welfare
A p3 B p2--- C - H; Demand (private value) p1 D - Supply (private cost) E 91 q2 q3 Demand (private value) Supply (private cost)
Transcribed Image Text:A p3 B p2--- C - H; Demand (private value) p1 D - Supply (private cost) E 91 q2 q3 Demand (private value) Supply (private cost)
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