Figure: Correcting for Market Failure Figure 17-7 is showing correcting for market failure. On the y axis is price per unit. There are only two points shown on this axis, p1 and then above it, p2. On the x axis is quantity per period. And there's only two points on this axis, w and then further to the right, r. Up on this axis, we see s2, and then a little further to the right is s1. These are upward sloping curves of supply. And then we have a demand curve, which is downward sloping. We see intersecting points t where the demand curve intersects with s2, which is further to the left. This point t is point p2 on the y axis, and point w on the x axis. We also see point v, which is where the demand curve intersects with s1, which is further to the right. This is shown to be correspond with p1 on the y axis, and r on the x axis. If we follow up point r on the x axis up to s2, we see that that is point u on the s2 curve. Reference: Ref 17-7 Figure: Correcting for Market Failure (Figure: Correcting for Market Failure) Use Figure: Correcting for Market Failure. There is an external cost in the market illustrated in the figure, and the two upward-sloping lines reflect private and social marginal costs. Economists argue that, in an unregulated private market, too _____ is produced. In the figure, the supply curve (S1) reflects _____ marginal cost. Question 40 options: much; social much; private little; private little; social and private