er, I p ealing as each baklava is consumed. The first baklava gives her a satisfaction level of 16 utils. The second baklava gives her half as much satisfaction as the first one. The third baklava gives her half as much satisfaction as the second, and so on. Place points A, B, C and D on the diagrams to depict the total and marginal utilities of baklava consumption. Marginal utility 20 A B C D 18 16 14 12 Marginal utility 10 00 4 N 0 0.0 1.0 2.0 3.0 4.0 5.0 Quantity\fSuppose Carlos has a budget of $100 to spend on soft drinks and bottled water. Soft drinks cost $2 per liter. Bottled water costs $1 per liter. Draw Carlos's budget line in the graph. 160 140 120 - - - - - - H _| O O 07 0 Bottled water (liters) on o A O M O 0 0 10 20 30 40 50 60 70 80 90 100 '_ - Soft drinks (liters) Suppose that solarpowered car technology advances to the point that solar-powered cars become affordable for the average consumer. Which type of externality is likely to result from a consumer's decision to purchase a solar-powered vehicle instead of a gas- powered vehicle, and how does it arise? This decision generates a 0 positive externality because the replacement of gas-powered vehicles with solar-powered vehicles will result in less environmental pollution. 0 positive externality because individuals can use the money they save on gasoline to help the local community. 0 negative externality because including new technology in the cars will drive up the market price. 0 negative externality because companies that do not produce solar-powered cars will be put out of business. Suppose the government is interested in moving the market closer to the socially optimal quantity. Which policy would likely result in the desired outcome? 0 granting one rm monopoly rights to produce solar-powered vehicles 0 a subsidy to consumers who choose to purchase solar-powered vehicles This decision generates a 0 positive externality because the replacement of gas-powered vehicles with solar-powered vehicles will result in less environmental pollution. 0 positive externality because individuals can use the money they save on gasoline to help the local community. 0 negative externality because including new technology in the cars will drive up the market price. 0 negative externality because companies that do not produce solar-powered cars will be put out of business. Suppose the government is interested in moving the market closer to the socially optimal quantity. Which policy would likely result in the desired outcome? 0 granting one rm monopoly rights to produce solar-powered vehicles 0 a subsidy to consumers who choose to purchase solar-powered vehicles 0 a price oor above the observed average price for a solar-powered car 0 a new tax levied on the makers of solar-powered cars