Question 1 (1 point) Figure 10-1 This figure reflects the market for outdoor concerts in a public park surrounded by residential neighbourhoods. Price Social Cost Supply (Private Cost) P2 C PA e Po 8 Demand Q1 Quantity of Concerts Refer to Figure 10-1. What does the difference between the social cost curve and the supply curve reflect? the profit margin of each concert OO the cost of spillover effects from the concert (e.g., noise and traffic) C the value of concerts to society as a whole the amount by which the city should subsidize the concert organizersQuestion 2 (1 point) Figure 10-1 This figure reflects the market for outdoor concerts in a public park surrounded by residential neighbourhoods. Price Social Cost Supply (Private Cost) PA Po 8 Demand Oo Quantity of Concerts Refer to Figure 10-1. What is the total surplus derived from the most efficient outcome? Oatb Oatbtc+d Oatb+c+dte+f CatbtctetgQuestion 3 (1 point) Figure 10-2 Social Price Supply (Private Cost) Demand Private Value) Q1 Q2 Quantity Refer to Figure 10-2. How could externalities in this market be internalized? O if there were a tax on the product O if there were a subsidy on the product O if production were stopped O if the Coase theorem failedQuestion 4 (1 point) Figure 10-5 Price X (Private Cost) Social Value Quantity Refer to Figure 10-5. To internalize the externality in this market, what should the government do? impose a tax on this product OO provide a subsidy for this product encourage firms to supply more of this product by taxing them OO encourage firms to supply less of this product by regulating themQuestion 5 (1 point) Assume that your roommate, Vanessa, is very messy and that she has the right to be messy. Suppose she gets a $100 benefit from being messy but imposes a $200 cost on you. What would the Coase theorem suggest would be an efficient solution for you? O to pay your roommate $99.99 to clean up after herself O to pay your roommate at least $100 but no more than $200 to clean up after herself O to pay your roommate at least $201 to clean up after herself C to charge your roommate at least $100 to have you clean up after her