Vaping imposes many external costs on society secondhand smoke, the adverse health burdens imposed on society, and so on. Therefore, the market equilibrium quantity of vapes does not equal the socially optimal quantity The following graph plots the demand for vapes (their private valar), the supply of vapes (the private cost of producing them), and the social cost of vapes, including both the private cost and external costs. Use the block point (plus symbol) to indicate the market equilibrium quaneity Next, use the purple point (diamond symbol) to indicate the socially optimal quantity ? PRICE OF VAPES Demand (Private Value) Social Cost Supply (Private Cost) Market Equilibrium Socially Optimal Level
Vaping imposes many external costs on society secondhand smoke, the adverse health burdens imposed on society, and so on. Therefore, the market equilibrium quantity of vapes does not equal the socially optimal quantity The following graph plots the demand for vapes (their private valar), the supply of vapes (the private cost of producing them), and the social cost of vapes, including both the private cost and external costs. Use the block point (plus symbol) to indicate the market equilibrium quaneity Next, use the purple point (diamond symbol) to indicate the socially optimal quantity ? PRICE OF VAPES Demand (Private Value) Social Cost Supply (Private Cost) Market Equilibrium Socially Optimal Level
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 42P: Table 12.12, shows the supply and demand conditions for a firm that will play trumpets on the...
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