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There are 4 types of externalities considered by economists. Positive consumption externalities, negative consumption externalities, positive production externalities, and negative production externalities. You are asked to perform a market analysis: Please show the effects of market circumstances and policy changes in accompanying supply and demand graphs, also providing some written commentary. (a) Please give an example of each type of externality. An example should include a url or other such citation. Depict the relevant market in a supply and demand model. (b) For two of the four cases (your choice) show what the market outcome would be in comparison to the market outcome that would occur absent an externality. (c) For each of the two cases in (b) identify a policy that a government could reasonably enact to solve the instance of market failure.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91721654

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