1. Assume that Firm XYZ produces coal in a perfectly competitive industry and that coal production imposes health costs on people who are neither consumers nor producers of coal. a. Draw ONE correctly labeled graph, show the coal industry's output and price under each of the following: i. The coal industry ignores the impact of coal production on people's health. Label the equilibrium quantity and price as Q and P, respectively. ii. The coal industry recognizes the health impacts and produces the socially optimal level of coal. Label the equilibrium price and quantity as Qso and Pso, respectively. b. Explain one policy the government may use to ensure that the coal industry produces the socially optimal level of coal.

2. Scientific studies show that getting a flu shot reduces not only your chance of getting the flu but also the chance that you will pass it on to someone else. a. Draw a correctly labeled graph for the flu shot market and show each of the following: i. The private market equilibrium price and quantity, labeled as Pm and Qm, respectively. ii. The socially optimal equilibrium price and quantity, labeled as Ps and Qs, respectively. iii. The deadweight loss associated with the private market equilibrium. b. Assume that the government wants to encourage people to get flu shots and decides to impose a binding price ceiling on the price of flu shots. i. Show the price ceiling on the graph you drew in part a. Label the price ceiling as Pc and the quantity associated with the price ceiling as Qc. ii. What is the impact of the price ceiling on deadweight loss? Explain. c. Instead of a price ceiling, assume that the government gives a subsidy for each flu shot purchased. i. Will the new equilibrium quantity of flu shots purchased be greater than, equal to, or less than the equilibrium quantity of Qm you identified in part (a)?

(may you please provide the actual graph? Thank you so much!!!)