Does anyone know the answer?
4 posters
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Does anyone know the answer?
This problem is on my econ hw. Here is my main question.
Consider the market for bubble gum.
a. Why might bubble gum exhibit negative externalities?
b. draw a graph of the market for bubble gum, labeling the demand curve, the social-value curve, the supply curve, and the social-cost curve.
NOW... is there even a social-value curve? My graph so far has the normal supply and demand graph (price on the Y, quantity on the X, downward sloping demand, upward sloping supply, market equilibrium at intersection). Then I added the social-cost curve above the supply curve (because there are negative externalities). What about the social-value curve? Is there even one? Doesn't there have to be positive externalities to have a social-value curve?
Consider the market for bubble gum.
a. Why might bubble gum exhibit negative externalities?
b. draw a graph of the market for bubble gum, labeling the demand curve, the social-value curve, the supply curve, and the social-cost curve.
NOW... is there even a social-value curve? My graph so far has the normal supply and demand graph (price on the Y, quantity on the X, downward sloping demand, upward sloping supply, market equilibrium at intersection). Then I added the social-cost curve above the supply curve (because there are negative externalities). What about the social-value curve? Is there even one? Doesn't there have to be positive externalities to have a social-value curve?
g00eY- Posts : 64
Join date : 2008-06-07
Age : 116
Location : Djibouti
what is social value?
I've never taken economics so I dunno, but what's a social value curve?
lingpiduh- Posts : 45
Join date : 2008-06-09
Re: Does anyone know the answer?
dunno the answer either. i just know that in singapore, it is illegal to buy/sell gum except when prescribed by a physician for severe halitosis
muriel burk- Posts : 88
Join date : 2008-06-07
Location : Naperville, IL
woah
woah, seriosuly?
i knew it was illegal to spit it on the ground, but even buying or selling is illegal. dang
i knew it was illegal to spit it on the ground, but even buying or selling is illegal. dang
lingpiduh- Posts : 45
Join date : 2008-06-09
Re: Does anyone know the answer?
I think that there was an equation for social cost curves
SC = PC + SV
social cost = private cost + social value
i dont remember what the curves look like anymore...i can look it up at home when i get back
SC = PC + SV
social cost = private cost + social value
i dont remember what the curves look like anymore...i can look it up at home when i get back
poofdavie- Posts : 69
Join date : 2008-06-09
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