Try another version of this question Suppose that there is a negative externality in the market for beer. The graph below shows the supply and demand curves for beer.
What is the market equilibrium quantity?
What is the market price?
What is the optimal (efficient) quantity?
What should the government do in order to ensure the market produces the optimal (efficient) quantity?
How big should the government's corrective taxes or subsidies be in this case?
As a result of this negative externality, the market
Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172 Box 2: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172 Box 3: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172 Box 4: Select the best answer Box 5: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172 Box 6: Select the best answer
Enter DNE for Does Not Exist, oo for Infinity
Enter DNE for Does Not Exist, oo for Infinity
Enter DNE for Does Not Exist, oo for Infinity
Enter DNE for Does Not Exist, oo for Infinity