Refer to Table 12.2. The externality created by the refrigerator production was $100. However, once we accounted for both the private and additional external costs, the market price increased by only $50. If the external costs were $100 why did the price only increase by $50 when we accounted for all costs?

Table 12.2

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Price Quantity Demanded $600 50,000 $650 45,000 $700 40,000 $750 35,000 $800 30,000 $850 25,000 $900 20,000 Quantity Supplied before Considering Pollution Cost 40,000 45,000 50,000 55,000 60,000 65,000 70,000 Quantity Supplied after Considering Pollution Cost 30,000 35,000 40,000 45,000 50,000 55,000 60,000