Please help, I appreciate it, thanks.

Please help, I appreciate it, thanks.

Please help, I appreciate it, thanks.

Please help, I appreciate it, thanks.

Please help, I appreciate it, thanks.

Please help, I appreciate it, thanks.

2 . The effect of negative externalities on the optimal quantityof consumption Consider the market for steel. Suppose that a steel manufacturing plant dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the plant. Producing an additional tonne of steel imposes a constant external cost of $210 per tonne. The following graph shows the demand (private value) curve and the supply (private cost) curve for steel. Use the purple points (diamond symbol) to plot the social cost curve when the external cost is $210 per tonne. 700 630 Social Cost 560 O 490 O 420 O Supply 350 PRICE (Dollars per tonne of steel) (Private Cost) 280 O Demand Private Value) 210 140 70 0 6 1 2 3 5 QUANTITY (Tonnes of steel)The market equilibrium quantity is tonnes of steel, but the socially optimal quantity of steel production is tonnes. To create an incentive for the firm to produce the socially optimal quantity of steel, the government could impose a of $ per tonne of steel.Social Cost 1.5 O 2 Supply (Private Cost) 2.5 O Demand 3 (Private Value) 3.5 4 4.5 2 3 5 6 7 QUANTITY of steel) 5 5.5 um quantity is tonnes of steel, but the socially optimal qua1.5 2 2.5 3 3.5 4 4.5 5 5.5 duction is tonnes. mpose a of persubsidy steel production i tonnes. tax t could impose a of per