17. Consider the market for a good in which there is a positive externality in consumption....

 

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17. Consider the market for a good in which there is a positive externality in consumption. What government action and result the market achieving the socially optimal level of output? Label the following, after the policy is implemented in a supply and demand graph. (a) Consumer Surplus. (b) Producer Surplus. (c) Tax Revenue. (d) Externality. (e) Welfare. (f) Deadweight Loss. 17. Consider the market for a good in which there is a positive externality in consumption. What government action and result the market achieving the socially optimal level of output? Label the following, after the policy is implemented in a supply and demand graph. (a) Consumer Surplus. (b) Producer Surplus. (c) Tax Revenue. (d) Externality. (e) Welfare. (f) Deadweight Loss.

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