Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3. The demand for electric vehicles is given by =100 , where is cars in a community, while marginal private cost is =. By reducing
3. The demand for electric vehicles is given by =100 , where is cars in a community, while marginal private cost is =. By reducing demand for gasoline, electric vehicles generate a marginal external benefit = a. What is the equilibrium number of electric cars in the private market? b. If the socially efficient number of electric cars is =20, what is the value of ? c. If the government subsidizes electric cars by $ each, what is the value of that induces the socially - efficient outcome?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started