Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Economics Posted 27 Jun 2018 My Price 3.00

negative externality

Battery creates a negative externality of $3 each. A city has a demand for batteries given by :P=200-0.003Q.

The supply of batteries is perfectly elastic at $50.

Please answer with a graph: What is the social optimal level of batteries? If there is a tax on batteries, what will it be?

 

P.S. does the supply of batteries is perfectly elastic at $50 means the supply curve is a horizontal line at $50?

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Maurice Tutor
(5)
Status NEW Posted 27 Jun 2018 10:06 PM My Price 3.00

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