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

reflect on the decisions you made in the simulation and address the following government intervention options in your submission:

• Government Tools: Discuss tools available to the government to correct a market failure.
• Supply and Demand Equilibrium: Describe how government intervention affects the supply and demand equilibrium. Refer to the simulation to explain your responses.
• Consumer or Producer Surplus: Specify which government interventions cause a consumer or producer surplus. Explain how they impact consumer or produce surplus.