Externalities Application-no credit given for answers based outside of course sources Part 2 (16 pts): Use the graph below to answer the questions on the next slide. Price $120 $80 Seher City D S 0 160 320 Quantity of potatoes 5

(Please refer to the attached image.) 1. What is the message in this cartoon? 2. Does the cartoon show a challenge or an opportunity? Why do you say so?

Part d-g

Identify at least one positive and negative externality from running a hamburger shop.  What is one example of how an externality could affect the price of your hamburger?

Please no written by hand Budget Selections to Build Demand As a commuter you have a budget of $250 to spend on gasoline each month. You drive a car that gets 20 miles per gallon (MPG). You can purchase 100 gallons of gasoline per month at the current price of $2.50 per gallon. Demand Schedule Price Quantity Commuting Errands Mp Social Activities Vacations $2.50 97.5 Drive Alone (700 miles) Small Trips as Needed (550 miles) Trips to City (350 miles) Out-of-State (350 miles) $3.00 Current price: $3.00/gallon Car Pool (425 miles) 2x per week (300 miles) Trips to Local Park (120 miles) In-State (200 miles) Add to schedule Previous $3.50 Public Transportation (60 miles) Next 1 Trip per Week (150 miles) Stay in Neighborhood (40 miles) > Stay-cation (50 miles) $4.00 QUANTITY 35 27.5 17.5 17.5 97.5 gallons Keynote $4.50 COST $105.00 $82.50 $52.50 $52.50 $292.50 of $250

Question 2 A rational person makes a choice if  Group of answer choices the choice makes money the benefits outweigh the costs the costs outweigh the benefits the choice is ethical

essment 1 P 46 40 40 :44 30 E₁ 24 24 E2 100 150 S -D2 -D1 The graph shown portrays a subsidy to buyers. The subsidy causes Saved units to be sold in this market.

The following table shows the total benefits and total costs of hiring security guards at a large department store. The total benefits represent the amount of theft prevented and the total costs represent the wages to be paid to the guards. What is the marginal cost of hiring the 3rd guard? a)$1000  b)$9000    c) $1500   d)$3000

Externalities are a form of market failure. Identify two externalities related to Covid-19, one positive and one negative. Graph and explain how each externality affects the optimal amount of the good that is generating the externality.

"As you shop for produce at the local farmer's market, you see many fruits and vegetables being offered by several different suppliers. Yet each supplier charges the same price for these fruits and vegetables." Write a paragraph that describes the characteristics of economic systems that result in the outcome described in the quotation.