Lets say a government decided they wanted to internalize the externality caused by the use of gasoline by putting a tax on gasoline. Carefully argue who the government should apply the tax to: the buyers or the sellers of the gasoline.

Q: Consider Good A.  There are NO externalities associated with Good A.   a.)  Draw a ( general- you…

A: The tax refers to the mandatory charge to be paid by the individuals and firms to the government. It…

Q: Consider the graph below, illustrating a positive externality. Price 569 $57 $45 $33 $21 28 36…

A: Externalities occur when there is an indirect impact on a party that is not directly related to the…

Q: Which of the following is true of the production of a good causing a negative externality? a. The…

A: Negative externality refers to adverse effect of production or consumption on the third party which…

Q: During the COVID-19 pandemic, alcohol consumption increased dramatically. In response, the…

A: The objective of the question is to understand the impact of a tax on a good with inelastic demand…

Q: Provide an example of a positive and a negative externality. Explain your examples.  Are there…

A: Provide an example of a positive and a negative externality. Positive externality :-  Development…

Q: If a third party in a market transaction incurs a positive benefit/externality, how can this…

A: If a third party in a market transaction incurs a positive benefit/externality, how can this…

Q: He bought a cell for $579. He doesn't like it anymore and posts it on instagram. He is willing to…

A: Consumer surplus is defined as the net benefit to the consumers which is measured as the difference…

Q: Define externalities. Also give an example of a negative externality

A: # Sometimes, some third person experience the effects of activities which is taking place between…

Q: The use of gasoline creates a negative externality through air polution. What is the size of the…

A: Deadweight loss is the welfare loss i.e. the loss of the society as a whole. In the case of negative…

Q: why do externalities make market outcomes inefficient?

A: A third party, who is not directly related with the exchange or production of goods and services…

Q: Was demand for its products more elastic or inelastic and why? Were consumers well informed of the…

A: ▪︎The law of demand states that as a good or service's price increases, demand for that good or…

Q: If negative externalities exist in the production of a product, it causes causes_ of the product

A: Negative Externality : Negative Externality exists when the production or consumption of a good or…

Q: Compared to a good with no externalities, a good with a negative externality will appear to have…

A: When the consequence of producing or consuming goods and services has the effect of imposing costs…

Q: How large tax rate should the government use to eliminate a negative externality? Why does this tax…

A: A negative externality occurs when the production/consumption of a   leads to a cost for third…

Q: Briefly explain what is meant by the term "externality" and how it occurs. What are some ways (name…

A: The classical economists believed that there should be limited government intervention in the…

Q: Briefly explain why a positive externality creates deadweight loss. You can use a graph to support…

A: Positive externalities are when an economic activity or transaction bestows benefits on parties that…

Q: olicymakers are provided data about the private and social benefits of a good being sold in the…

A: Private benefit is the benefit obtained from the consumption or production of a good by an…

Q: How do externalities affect the supply and demand curve? Please explain in detail with graphs and…

A: How do externalities affect the supply and demand curve? Please explain in detail with graphs and…

Q: Briefly explain in (1-2 sentences) why the existence of negative externality will result in…

A: Externality - Externality is nothing but the external effect (positive or negative) on another…

Q: Solve all questions compulsory...

A: Externalities are the costs or benefits of an economic activity that indirectly affect a third party…

Q: In the past, some counties and countries have imposed taxes on sugar, saturated fats, and food made…

A: As the milk chocolates includes huge sugar content which can lead to some health related issues. And…

Q: O area C+ D+ G + H.

A:

Q: The provided figure shows the deadweight loss associated with negative externalities (ABD). Using…

A: The positive externality would result in the affecting the production of one party by another third…

Q: What is Pigouvian tax? Suppose government wants solve externality problem by mposing Pigouvian tax.…

A: Pigouvian taxes are designed to counteract market inefficiencies by raising the marginal private…

Q: What does it mean to "internalize" a negative externality? Please give an example.

A: Externality: - It is a cost/benefit, generated by the production/consumption by someone, which is…

Q: Price per bin 120 110 100 90 80 70 60 50 40 30 20 10 $800 $900 V $450 O $1250 1 1 + 1 D S+t S in The…

A: A tax is a statutory fee charged by the government authority to spend money on public expenditure.…

Q: When an externality occurs governments may intervene to try to line up the social costs/benefits…

A: Approach to solving the question:In the scenario you described, where the private cost (PC) shifts…

Q: Price ($) SMC Demand PMC Quantity Refer to the graph above. What areas represents the government…

A: Arthur Pigou, a renowned economist, is credited with developing the notion of externalities. Arthur…

Q: QUESTION 38 | To internalize a positive externality: a. the consumers of a good could receive a…

A: Externality refers to an economy situation when the action or economic transaction of an individual…

Q: The following graph shows the marginal social cost (MSC), the marginal private cost (MPC), and the…

A: Externality: - it is a cost or benefit generated for the third party by the actions of other people.

Q: Draw a graph and explain fully the case that a private firm creates negative externalities, covering…

A: Note As per policy we will answer only first question as you have posted 2 questions , please post…

Q: Compared to a good with no externalities, a good with a negative externality will appear to have…

A: Externality:- An externality can be explained as an expense or benefit incurred or gained by a…

Q: The Cemex plant in Davenport produced cement. The production of cement created dust which traveled…

A: Externalities means the positive or negative consequences of a transaction or activity that affect…

Q: TYRES private + social cost S1 Price S private cost NEGATIVE TAX/FINE EXTERNALITY P1 D Q1 Quantity

A: In a market, externality refers to the additional cost or benefits to the third party or enviornment…

Q: Figure 10-1 (above)- For the described negative externality, what is the market Price/Quantity…

A: Negative externalities are negative side effects of economic activities which are faced by the third…

Q: Explain the difference between positive and negative externalities along with an example.

A: Answer: An externality exists when some economic agent’s welfare (utility or profit) is directly…

Q: Define what is externality in detail.

A: An externality is a concept in economics that refers to the unintended side effects or consequences…

Q: The use of gasoline creates a negative externality through air pollution. What is the size of the…

A: Market inefficiency, which arises when supply and demand are out of balance, results in a deadweight…