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Author Question: Provide an example of each type of externality that is different from the ones described above. ... (Read 64 times)

imowrer

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on: Jun 29, 2018
Provide an example of each type of externality that is different from the ones described above.
 
  What will be an ideal response?

Question 2

If the price of toothpaste is represented by equation P = 40 - .5QD, then the corresponding quantity of toothpaste demanded is represented by the equation
 
  A) QD = 80 - 2P. B) QD = 40 - P. C) QD = 20 - .5P. D) QD = -20 + P.


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Tabitha_2016

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Dumping dangerous chemicals in river while producing paper is an example of a negative production externality. Baking bread and the resulting odor enjoyed by by-passers is an example of a positive production externality. Littering while hiking is an example of a negative consumption externality. Planting a beautiful bamboo garden that by-passers enjoy is an example of a positive consumption externality.

Answer to Question 2

A


imowrer

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Reply #2 on: Jun 29, 2018
Thank you :)


Tabitha_2016

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Reply #3 on: Jun 29, 2018
Happy to help you


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