Does anyone know the answer?

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Does anyone know the answer?

Post  g00eY on Mon Jun 23, 2008 10:16 pm

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?
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what is social value?

Post  lingpiduh on Tue Jun 24, 2008 10:10 am

I've never taken economics so I dunno, but what's a social value curve?

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Re: Does anyone know the answer?

Post  muriel burk on Tue Jun 24, 2008 1:37 pm

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 What a Face

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woah

Post  lingpiduh on Tue Jun 24, 2008 2:01 pm

woah, seriosuly?
i knew it was illegal to spit it on the ground, but even buying or selling is illegal. dang affraid affraid affraid

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Re: Does anyone know the answer?

Post  poofdavie on Tue Jun 24, 2008 3:20 pm

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

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Re: Does anyone know the answer?

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