PLEASE ANSWER ALL OF THE FOLLOWING QUESTIONS: What effect will an improvement in production technology have...

PLEASE ANSWER ALL OF THE FOLLOWING QUESTIONS:

What effect will an improvement in production technology have on:
1. Equilibrium price Increase
2. Equilibrium quantity Increase
The price of a good is $12. Each good sold has a negative externality of $3. Find the social cost.
Consider a McDonald’s:
1. Are their products excludable? How?
2. Are their products rival in consumption? How? (You competing with other buyers)
Good X and Y are complements. If the price of good Y increases, what will happen to the equilibrium quantity of good X?
The price of a good with a negative externality is $8. The external cost is $3. Find the social cost.
State a negative externality from vodka.
1. Based on the negative externality, would it be optimal if more vodka were sold, or less?

Expert Solution

The questions are mixed up. Please arrange the question and make it clear to understand for the experts. I have answered all the questions except 2, where I think that more information is required. Please check. Thanks.

Rahul Sunny answered 1 year ago

An improvement in production technology will:

An improvement in production technology will: A. increase equilibrium price. B. shift the supply curve to the left. C. shift the supply curve to the right. D. shift the demand curve to the left.

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