I need a help. 1 Refer to Figure 1, answer question 1)-4) Flgare 1 1) The soeial

Question

I need a help.

1 Refer to Figure 1, answer question 1)-4) Flgare 1 1) The soeial cost euve is above the supply eurve becmse a. it takes into account the exterzal costs iposed on society by the cocert b. it takes isto account the effeet of local oi esmictions on concerts in parkcs aunounded by esidenrial cconcert tickets re likely to cost more than the concert neny costs the organizers d. residets in the sunounding neigliberoos gd lo lite to the concat t fee Ddlerence betwreen the social cost curve and the supply curve reflects the a. profit margin of ench concert. b cost of spillover effects trom the conert eg., noise snd traffie). c. vahie of conceta to society as a whole d amount by which the city suid subsidize the concert organiaens 3) At the private madet outcome, te equilibrium poe will be d. None of the above is courect What price and qunity comination best represents the optium price snd number af concers that should be organized

Explanation / Answer

First four questions are answered below

1. (A) it takes into account external cost imposed on society (negative externality)

2. (B) costs of spillover effects (or externality cost)

3. (B) P1 (intersection of demand and supply curves)

4. (B) P2, Q0 (intersection of social cost and demand curve)

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