Search results

  1. G

    Suppose that the demand curve for new cars is Q = 120 - P (making inverse demand

    P = 120 - Q)...? and the supply curve cost is horizontal at $24 per car. What is the equilibrium price and quantity of cars? Now suppose that each car produces one unit of smog, that imposes an external cost of EC = 0.01s2. Total social costs are now the sum of the $24 in production costs and...
  2. G

    Suppose that the demand curve for new cars is Q = 120 - P (making inverse demand

    P = 120 - Q)...? and the supply curve cost is horizontal at $24 per car. What is the equilibrium price and quantity of cars? Now suppose that each car produces one unit of smog, that imposes an external cost of EC = 0.01s2. Total social costs are now the sum of the $24 in production costs and...
Back
Top