Consumption Externalities Assignment | Homework For You
December 18th, 2019
B. 1Consider the use of tolled highways . When the number of cars using the highway exceeds a certain level , there will be traffic congestion such that drivers are creating negative consumption externalities . Suppose a government official proposes to increase the toll toa level that can eliminate congestion .Discuss how the negative consumption externalities arise . 
In particular , who create (‘s ) the externalities and who suffer from them ?"19Draw a diagram to represent the above situation . In your diagram , indicate the unregulated market quantity and socially efficient quantity . Is there over- congestion in the unregulated market ?"What is the outcome under the proposal of the government official ? Explain whether you agree with this proposal .[ Hint : (1) Externalities may not start from the very first unit . ( 2 ) Eliminating congestion means to remove it totally . ] Get Economics homework help today
In particular , who create (‘s ) the externalities and who suffer from them ?"19Draw a diagram to represent the above situation . In your diagram , indicate the unregulated market quantity and socially efficient quantity . Is there over- congestion in the unregulated market ?"What is the outcome under the proposal of the government official ? Explain whether you agree with this proposal .[ Hint : (1) Externalities may not start from the very first unit . ( 2 ) Eliminating congestion means to remove it totally . ] Get Economics homework help today
