Answer Happy

price G Optimum F .......... D B C demand (private valuations) 0 Qoptimal QMarket quantity Diagram above describes the impact of a Pigouvian tax on a market. Construct the social accounting ledger. If your basic economics s on economics, for example the Economy by CORE ( https://core-econ.org/the-economy/book/ ... equilibriu Using the capital letters indicate the areas of the graph that represent the gains or losses to various groups from this policy in the cost format is for example A or B+C+D). If you think there is no cost or benefit, use 0. On the Total net row, write the net cost or benefit. Costs Benefits Consumers Producers Government External parties Total net External cost A E Social cost supply (private costs) Market equilibrium