Ch.10 Externalities Problems and Applications: 6 and 14 (Textbook) 6. Greater consumption of alcohol leads to more car accidents and, thus, imposes costs on people who do not drink and drive.~ a. Illustrate the market for alcohol, labeling the demand curve, the social-value curve, the supply curve, the social-cost curve, the market equilibrium level of output, and the efficient level of output. ~ Answer: b. On your graph, shade the area corresponding to the deadweight loss of the market equilibrium. (Hint: The deadweight loss occurs because some units of alcohol are consumed for which the social cost exceeds the social value.) Explain. Answer: 14. (This problem is challenging.) There are three manufacturing firms in Jurong. Island. Firme Initiale Cost of Reducing