optimal quantity of public goods that the government should provide, and interpret your results. Make sure you show all of the relevant cases. What happens when b changes, or when q changes? (b) Repeat part (a), except with perfect complements preferences; that is, for the case where the representative consumer always wishes to consume private consumption goods and public goods in fixed proportions, or C = aG, with a > 0.

Can you please answer (Question.3) below?

One of the problems of allowing goods and services to be distributed solely by the market is that income is unequally distributed, especially here in the US. Why would the market produce an inadequate level of some goods and services, which society might view as critical for peoples’ well being, while at the same time, use a significant quantity of resources to produce goods and services that contributed little to society’s overall well being?  Your answer should contain at least two examples of goods and services that are critical and inadequately produced and two examples of goods and services that are largely wasteful and overproduced (4 examples in total). Remember your answer should revolve around the distribution of income, and should be    focused only on the United States.

Suppose there are two consumers A and B, and two goods x and y. A's utility function has the following form UA = XA - (XB)1. Which of the following is true? Consumer A's consumption of good x exhibits a negative externality. Consumer A's consumption of good x exhibits a positive externality. Consumer B's consumption of good x exhibits a negative externality. Consumer B's consumption of good x exhibits a positive externality.

On the basis of the three Individual demand schedules below, and assuming these three people are the only ones in the society, determine (a) the market demand schedule on the assumption that the good is a private good and (b) the collective demand schedule on the assumption that the good is a public good Instructions: Enter your answers as whole numbers (in the gray-shaded cells). Individual #1 Individual #2 Individual #3 (a) Private Demand (b) Public Demand Od Qd Price Qd Price Qd Price Price Qd Price $8 $8 $8 $8 1 1 7 2 7 2 7 2 7 2 6 3 6 3 6 3 6 3 4 4 4 4 5 5 5 4 5 5 4 5 4 5 4 3 6 6 6 3 6 2 7 2 7 2 7 2 7 1 8 1 8 1 8 1 8

Please answer everything in the photos.

Externalities - Definition and examples An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is adverse, it is called a ___________ externality.   The following graph shows the demand and supply curves for a good with this type of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good.

With the provision of a public good: A) Everyone who uses the good benefits from it in proportion to their contribution to the level of provision. B) Everyone benefits from the total provision of the good, irrespective of their own level of contribution to its provision. C) The best way of providing the good is through the work of a public agency. D) Everyone who wants to use the good has to purchase a permit to allow them to do so.