Refer to figure 10 5 which price and quantity

This preview shows page 2 - 4 out of 9 pages.

9.Refer to Figure 10-5.Which price and quantitycombination represents the social optimum?a.P0andQ1b.P2andQ1....10.Refer to Figure 10-5.This graph illustrates a11. Which of the following statements is correct?
Name: ______________________ID: A12.At any given quantity, the willingness to pay inthe market for gasoline is reflected in thea.height of the demand curve at that quantity.b.height of the supply curve at that quantity.c.value to the producer of the last unit ofgasoline sold.d.total quantity of gasoline exchanged in themarket.e.height of the equilibrium.
3
13. Suppose that smoking creates a negativeexternality. If the government imposes aper-cigarette tax equal to the per-cigaretteexternality, then
14. Since almost all forms of transportation producesome type of pollution,

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 9 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
Mr. Parks
Tags
Externalities, Public Good, Supply And Demand, Test Prep, Unit 10, Practice Test, Unit 9, Market failure, Externality

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture