is the consumers, not the sellers, who are creating the negative externality.) Label the socially optimal

output and price as Pe and Qe. On the graph, shade in the deadweight loss at the market output.

41. Refer to Table 12.2. The externality created by the refrigerator production was $100. However, once we

accounted for both the private and additional external costs, the market price increased by only $50. If the

external costs were $100 why did the price only increase by $50 when we accounted for all costs?

42. Table 12.12 shows the supply and demand conditions for a firm that will play trumpets on the streets

when requested. Qs1 is the quantity supplied without social costs. Qs2 is the quantity supplied with social
costs. What is the negative externality in this situation? Identify the equilibrium price and quantity when

we account only for private costs, and then when we account for social costs. How does accounting for the
{"source": "downloads\\business\\economics\\Microeconomics3e.pdf", "creationdate": "2022-12-07T14:15:44-06:00", "producer": "Prince 14.2 (www.princexml.com)", "file_name": "Microeconomics3e.pdf", "batch_upload": true, "upload_timestamp": "2026-02-07T15:37:44.339247", "total_pages": 597, "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "file_type": ".pdf", "creator": "PDFMiner", "moddate": "2022-12-07T14:23:05-06:00", "title": "Principles of Microeconomics 3e", "file_size_mb": 26.99, "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "uploaded_via": "batch_uploader"}