Hi,Can you solve ex 2 and 6?

generating the externality. this policy might be efficient? 2. Consider the market for fire extinguishers. 6. Greater consumption of alcohol leads to more motor a. Why might fire extinguishers exhibit positive externalities? vehicle accidents and, thus, imposes costs on people b. Draw a graph of the market for fire extinguishers, who do not drink and drive. labelling the demand curve, the social value curve, the a. Illustrate the market for alcohol, labelling the demand supply curve and the social cost curve. curve, the social value curve, the supply curve, the c. Indicate the market equilibrium level of output and the social cost curve, the market equilibrium level of efficient level of output. Give an intuitive explanation output and the efficient level of output. for why these quantities differ. b. On your graph, shade the area corresponding to the d. If the external benefit is (10 per extinguisher, describe deadweight loss of the market equilibrium. (Hint: a government policy that would result in the efficient the deadweight loss occurs because some units outcome. of alcohol are consumed for which the social cost 3. In many countries, contributions to charitable exceeds the social value.) Explain