5. \"When we let the market operate without intervention, there will typi cally be an over-provision of public bad.\" Do you agree? Explain and show it using a graphical model. Solution: Just as markets often lead to the underprovision of public goods, markets often also lead to an overprovision of public bads. A graphical model can be presented in the spirit of Figure 5.8 in the textbook (also provided in the lecture notes)