1. In Chapter 12 and 13, it talks about externalities and its effect to the community. Click on the following link and read about the EPA lawsuit settlement with Orion Engineered Carbons, LLC, and answer the following questions.

Orion Engineered Clean Air Act Settlement

• a. In this article, what is the externality in issue (positive or negative externality)?
• b. Give some examples of the corresponding external costs/external benefits if any, that Orion Engineered might cause and affect the communities if EPA did not intervene.
• c. What are the remedies required by the EPA on the company?
• d. Applying the theory and graphical model in ch.12, how will EPA intervention affect the price and the quantity supplied of the product in the market?

2. Give an example of externality in your community, and explain your own personal belief about how externalities may affect you and your community in that case.