1.In each case, identify the spillover effect and cite one government policy that could deal with this effect. (A /S, C /S) (a) A late night dance club in a suburban neighborhood disturbs nearby residents could deal with this effect. (b) A new subway line reduces a city's trafc congestion. (c) The use of throw-away batteries adds to soil pollution. (d) A recently invented electric light bulb uses far less electricity than conventional bulbs. (e) A new high-speed jetliner uses more energy per passenger mile than existing aircraft. 2.(a)Draw the case of a perfectly competitive market that operates, without government intervention, at an equilibrium price of $5 per unit and an equilibrium quantity of 200,000 units. (T: / l) (b)If this product has spillover benets of an extra $3, draw the new demand curve on your graph that incorporates these spillover benets. Pinpoint the preferred outcome on your graph. (T: /l) (c)0utline one government policy that could be used to ensure that the market reaches this preferred outcome. (A: / l) 3. How would the signing of a new global agreement to reduce carbon emissions affect price in the market for carbon credits? Explain. (A: l C: / 1)