Give an example of a positive externality in consumption

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Reference no: EM131356483

Open Word and answer the following questions. Save the document and print it when you are done.

1. Give an example of a positive externality in consumption.

2. Analyze the welfare effects of a positive externality in consumption. Use Word's Drawing Tools to support your answer with a demand and supply graph.

3. In each case that follows, describe the regulatory strategy to correct the market failure caused by a positive externality in consumption.

a. Command and control

b. Pigou

c. Coase

Reference no: EM131356483

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