Scenario 10-1 The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 400th gallon of gasoline entails the following a private cost of $2.33; a social cost of $3.12, a value to consumers of 53 23 Refer to Screario 16-1. Suppose the equilibrium quantity of gasoline is 440 gallons, that is, Q-440. Then the equilibrium price of a gallon could be Select one: Oa. $2.88 Ob. $2.51. c. $2.63. Od. $3.66

Scenario 10-1 The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 400th gallon of gasoline entails the following a private cost of $2.33; a social cost of $3.12, a value to consumers of 53 23 Refer to Screario 16-1. Suppose the equilibrium quantity of gasoline is 440 gallons, that is, Q-440. Then the equilibrium price of a gallon could be Select one: Oa. $2.88 Ob. $2.51. c. $2.63. Od. $3.66

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter8: Market Failure

Section: Chapter Questions

Problem 2P: Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and...

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Scenario 10-1The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 200th gallon of gasoline entails the following: a private cost of $3.03; a social cost of $3.23; a value to consumers of $3.39. Refer to Scenario 10-1. Let QMARKET represent the equilibrium quantity of gasoline, and let QOPTIMUM represent the socially optimal quantity of gasoline. Which of the following inequalities is correct? Group of answer choices QOPTIMUM < QMARKET < 200 QMARKET < 200 < QOPTIMUM 200 < QOPTIMUM < QMARKET QOPTIMUM < 200 < QMARKET
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Scenario 10-1 The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward, The production of the 1,000 gallon of gasoline entails the following a private cost of $3.10 a social cost of $3-55 a value to consumers of 83-70 Refer to Seenario 10-1. From the given information, it is apparent that O a the production of gasoline involves a negative xternality, so the market will produce a smaler quantity of gasoline than is socially desirable. O b. the production of gasoline involves a positive esternality, so the market will produce a smaller quantity of gasoline than is socially desirable O c he production of gasoline invalves a posve externality, so the market will produce a larger quantity of gasoline than is socially desiratie. Od the production of gasatine imolves a negative extemality, se the market will produce a larger quantity of ganolne than is socially desirable.
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