Figure 10-1. The following graph represents the tobacco industry. A graph of price, P, versus quantity, Q, shows a supply curve, Private Costs, rising linearly, a second supply curve, Private + Public Costs, rising linearly above the first supply curve, and a demand curve, D, descending linearly. Curve D and Curve Private Costs intersect at point (38, 2.07), which is also the private market equilibrium price and quantity. Curve D and Curve Private + Public Costs intersect at point (24, 2.80). Point (30, 3) is marked on Private + Public Costs. Point (50, 1.50) is marked on Curve D. Refer to Figure 10-1. The industry creates a. negative externalities. b. no equilibrium in the market. c. positive externalities. d. no externalities