Question 7 1 This figure reflects the market for outdoor concerts in a public park surrounded by residential neighborhoods. Price Social Cost Supply (Private Cost) Po Demand Qo Q1 Quantity of Concerts The social cost curve is above the supply curve because it takes into account the external costs imposed on society by the concert. it takes into account the effect of local noise restrictions on concerts in parks surrounded by residential neighborhoods. O concert tickets are likely to cost more than the concert actually costs the organizers. residents in the surrounding neighborhoods get to listen to the concert for free