Greater consumption of alcohol leads to more motor vehicle accidents and thus imposes the costs on people who don`t drink and drive

1. The type of market failure represented by the scenario is a negative externality

2. The market fails in this scenario because no transaction takes place, goods are over consumed, goods are under consumed, no private provision

3. Solution to market failure is taxation

4. The equilibrium quantity is less than, greater than or equal to the socially efficient quantity

5. The private cost benefit curve is shift inward to the social benefit curve, shift outward to the social benefit curve or remains unchanged

6. The private cost curve is shift inward to the social cost curve, shift outward to the social cost curve or remains unchanged

7. The efficient output is found where the social cost and the social benefit curve intersect, the private cost and the private benefit curve intersect, private cost and social benefit curve intersect, or social cost and private benefit curve intersect.