Draw a Graph to Illustrate the Market Equilibrium and the Social

question 120

Essay

Draw a graph to illustrate the market equilibrium and the social optimum in the case where there is a negative externality.Explain why the social optimum is preferred to the market equilibrium.

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Definitions:

REM Rebound

An increased frequency of rapid-eye-movement (REM) sleep experienced after a period of REM sleep deprivation.

Repression

A defense mechanism where unpleasant thoughts or desires are unconsciously excluded from the conscious mind.

Suppression

Consciously or unconsciously avoiding or holding back thoughts and feelings perceived as unacceptable.

Nonconscious Process

Mental processes that occur outside of human awareness, influencing thoughts, feelings, and behaviors without conscious recognition.