Very straight forward problem regarding dead weight loss ect. grade 12
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Use the following graph for questions 9-12. The graph illustrates the market for sugar-sweetened beverages (such as soda). There is a negative externality associated with sugar-sweetened beverages, which is why the marginal social cost exceeds the marginal private cost. Price $30 Marginal social cost Marginal private cost Marginal private benefit Quantityr 100 150 For question 9, what is the size of the deadweight loss associated with this product? 0 $500 0 $250 0 $1,000 0 $2,000 Use the following graph for questions 9-12. The graph illustrates the market for sugar-sweetened beverages (such as soda). There is a negative externality associated with sugar-sweetened beverages, which is why the marginal social cost exceeds the marginal private cost. Price $80 Marginal social cost Marginal private cost Marginal private benefit Quantityr 100 150 For question 10, what is the size of the marginal external cost associated with this product? 0 $10 0 $15 0 $20 O$5 Use the following graph for questions 9-12. The graph illustrates the market for sugar-sweetened beverages (such as soda). There is a negative externality associated with sugar-sweetened beverages, which is why the marginal social cost exceeds the marginal private cost. Price $80 Marginal social cost 540 Marginal private cost $30 $20 $10 Marginal private benefit Quantity 100 150 For question 11, what is the socially optimal price and quantity (i.e. the price and quantity that would maximize social welfare)? 0 Q= 150,P=$20 O Q= 100,P=$30 O Q= 150,P=$30 O Q=100,P=$20 Use the following graph for questions 9-12. The graph illustrates the market for sugar-sweetened beverages (such as soda). There is a negative externality associated with sugar-sweetened beverages, which is why the marginal social cost exceeds the marginal private cost. Price Marginal social cost Marginal private cost Marginal private benefit Quantity 100 150 For question 12, assume that the government sets the optimal tax to correct the negative externality in this market. Which of the following areas represents government revenue raised as a result of the tax? O D + A + B + C O A + E O A+B+E+F O G+C+H