Below is the the market demand curve for reusable water bottles when only the marginal private benefits (MPB) that the owners of reusable water bottles receive are taken into account. Let's say that the government issued vouchers that ensured the reusable water bottle buyers received $10 per bottle. Assume that this will shift the demand curve to the marginal social benefit level (MSB). Move the demand curve to show this change and reposition the Social Equilibrium point to reflect the socially optimal price and quantity. Provide your answer below: 35 32.5 rice

Below is the the market demand curve for reusable water bottles when only the marginal private benefits (MPB) that the owners of reusable water bottles receive are taken into account. Let's say that the government issued vouchers that ensured the reusable water bottle buyers received $10 per bottle. Assume that this will shift the demand curve to the marginal social benefit level (MSB). Move the demand curve to show this change and reposition the Social Equilibrium point to reflect the socially optimal price and quantity. Provide your answer below: 35 32.5 rice

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 2PA

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Below is the the market demand curve for yard leaf cleaning when only the marginal private benefits (MPB) that the homeowners receive from the clean yard are taken into account. If the government provides a subsidy to yard cleaning companies, equal to $10 per yard, the demand curve will shift and become the same as the marginal social benefit curve (MSB). Move the demand curve to illustrate that. Provide your answer below:
Some economists claim that early child care generates an external benefit to society. a. What is the market equilibrium? What is the socially optimal outcome? How do they differ? b. The government is planning to provide a per-unit subsidy for child care to achieve the socially optimal outcome. How large should this subsidy be? c. How much is the total government subsidy each month to reach a socially optimal outcome?
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Below is the the market demand curve for yard leaf cleaning when only the marginal private benefits (MPB) that the homeowners receive from the clean yard are taken into account. If the government provides a subsidy to yard cleaning companies, equal to $10 per yard, the demand curve will shift and become the same as the marginal social benefit curve (MSB). Move the demand curve to illustrate that. Provide your answer below: Supply 2- Demand 2 4 8 Number of yards (in hundreds) Price per yard (in tens)
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What is an externality? How do they affect market efficiency? If an externality is present, where is the socially optimal point of production? Where will the market produce if there is no government intervention? How do we get from the private market equilibrium to the socially optimal one?