Graphing Assignment - The city of Crawfordville, Florida has a very bad problem with the mosquito population from late April through late September almost every year. The City generally sprays the mosquito population to deal with the problem. The data below, collected and maintained by the City of Crawfordville's Finance Department, shows the City's market data for spraying for mosquitoes. The price is measured in US dollars per spraying and both quantities are measured in the number of spraying events per year, from 2002-2015.
|
P
|
80
|
70
|
60
|
50
|
40
|
30
|
20
|
|
Qs
|
14
|
12
|
10
|
8
|
6
|
4
|
2
|
|
Qd
|
2
|
4
|
6
|
8
|
10
|
12
|
14
|
The Rennert Quantitative Group, LLC, of Davie, Florida, is a firm that specializes in local data collection. The firm at the request of the City Council has studied the Crawfordville population and discovered the City derives a positive externality of $20 for every spraying for mosquitoes.
a. In one clearly and accurately labeled graph, created using Excel, graph the market data as collected by the City Council as well as the market failure that the Rennert Group has discovered.
b. Referencing only your graph, what equilibrium price and quantity does the market generate?
c. Referencing only your graph, what is the extent of market failure in this situation? What price and quantity are consistent with an efficient level of spraying?
d. Given that there is market failure, provide one solution for how the efficient level of mosquito spraying can be achieved.
Graphs for this assignment must be properly constructed and created using Excel. Prepare your assignment as a Word document with embedded Excel charts. Number each step of the assignment. The assignment may be submitted to Turnitin as a Word or .pdf document.