D Scenario #1 PRICE 70 5 SOCIAL Consider the illustration to the right that shows the 60 market for steel production. The initial private supply curve does not account for the external costs 50 for the production of steel. Identify at least three negative external spillover effects associated with the 40 production of steel. 30 5 PRIVATE A. B. 20 10 PRIVATE What are some of the issues associated at the DEMAND intersection at the private supply and demand 0 equilibrium? 1 2 3 4 5 6 7 Q? QUANTITY (In Millions) Use the graph above to solve the following scenarios. The initial private supply curve does not account for the external costs of steel production. 1. Draw a dotted line on the graph to indicate the actual private costs and output in the steel market. 2. Draw a solid line on the graph to show the ideal social supply and demand output level. 3. What is Efficient Equilibrium? 4. How might the government force manufacturers to internalize (bear) the full costs of steel production