00:02
Before going to the graph and the question, let us understand what the terms market demand, social demand and market supply means and also about the market failures, such negative externality, positive externality, non -excludability and monopoly power is.
00:24
So, first market demand, it is the total quantity demanded across all consumers in a market for a given good.
01:10
Then next social demand, it address common goods such as use of space, ambience qualities, amenities, emancipation, fairness and so on.
02:12
Market supply, it is the summation of individual supply curves within a specific market.
02:46
Market supply curve is an upward sloping curve depicting the positive relationship between and quantity supplied.
03:51
Now, a negative externality exists when the production or consumption of a product results in a cost to a third party.
04:48
Now, positive externality exists if the production and consumption of a good service benefits a third party not directly involved in the market transaction.
05:59
A good service or resource is unable to prevent or exclude non -paying consumers from experiencing or using, it can be considered non -excludable...