I participated in two simulations

First Simulation - Externalities without policy interventions

unit price cost personal nusisance payoff

1 $4.64 $1.70 $0.13 $2.81

2 $2.72 $3.33 $0.13 $0.74

Total Nusisance (caused by others) $ -0.93

Total $1.13

Second Simulation - Externalities With policy interventions

unit price cost personal nusisance Tax payoff

1 $4.18 $2.00 $0.13 $1.33 $0.71

2 $3.94 $3.63 $0.13 $1.33 $ - 1.16

Total Nusisance (caused by others) $ -0.40

Tax returned $0.40

Total $ -0.44

What impact do policy interventions have on the supply and demand equilibrium for a product? Provide specific examples from the simulation to illustrate.]

[What are the determinants of price elasticity of demand? Identify at least three examples. Explain how price elasticity can impact pricing decisions and total revenue of the firm.]

[What policy intervention can cause a change in consumer or producer surplus? Explain why using specific reasoning.]