Table 12.12 , shows the supply and demand conditions for a firm that will play trumpets on the streets when requested. $\mathrm{Qs}_{1}$ is the quantity supplied without social costs. $\mathrm{Qs}_{2}$ is the quantity supplied with social costs. What is the negative externality in this situation? Identify the equilibrium price and quantity when we account only for private costs, and then when we account for social costs. How does accounting for the externality affect the equilibrium price and quantity?
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Table 12.12, shows the supply and demand conditions for a firm that will play trumpets on the streets when requested. Qs1 is the quantity supplied without social costs. Qs2 is the quantity supplied with social costs. What is the negative externality in this situation? Identify the equilibrium price and quantity when we account only for private costs, and then when we account for social costs. How does accounting for the externality affect the equilibrium price and quantity?
Table 12.5 provides the supply and demand conditions for a manufacturing firm. The third column represents a supply curve without accounting for the social cost of pollution. The fourth column represents the supply curve when the firm is required to account for the social cost of pollution. Identify the equilibrium before the social cost of production is included and after the social cost of production is included. $$\begin{array}{l|l|ll}\hline \text { Price } & \begin{array}{l}\text { Quantity } \\\text { Demanded }\end{array} &\begin{array}{l}\text { Quantity Supplied without paying } \\\text { the cost of the pollution }\end{array} &\begin{array}{c}\text { Quantity Supplied after paying } \\\text { the cost of the pollution }\end{array} \\\hline \$ 10 &450 & 400 & 250 \\\hline \$ 15 & 440 & 440 & 290 \\\hline \$ 20 & 430 & 480 & 330 \\\hline \$ 25 & 420 & 520 &370 \\\hline \$ 30 & 410 & 560 & 410 \\\hline\end{array}$$
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