$18 15 12 Supply Social value Demand 1,600 2,000 The figure above depicts the market for a water cleaner for home aquariums. After use it gets washed down drains and enters into streams, where it improves the mineral content of the water and thus leads to better water quality, better fish growth and improves sports fishing in the area. How much water cleaner is produced if the government doesn't get involved? Note, the social value curve represents the demand plus the positive externalities from its use. 2000 3600 1600 0
$18 15 12 Supply Social value Demand 1,600 2,000 The figure above depicts the market for a water cleaner for home aquariums. After use it gets washed down drains and enters into streams, where it improves the mineral content of the water and thus leads to better water quality, better fish growth and improves sports fishing in the area. How much water cleaner is produced if the government doesn't get involved? Note, the social value curve represents the demand plus the positive externalities from its use. 2000 3600 1600 0
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 41P: Refer to Table 12.2. The externality created by the refrigerator production was 100. However, once...
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