. The Taylor Teletransporter is new technology that will transport people instan
ID: 2523309 • Letter: #
Question
. The Taylor Teletransporter is new technology that will transport people instantaneously between any two places on earth. This invention will provide considerable spillover benefits to society. The table below shows the demand for the transporters, the supply of transporters if Taylor receives only the private benefits, and the supply of transporters if Taylor also receives the full social benefits. Identify the equilibrium quantity and price if Taylor Transporters were sold based only on private benefits. Identify the equilibrium price if the brllant inventor Taylor was to receive the social benefits too Quantity DemandeReceives Only Private BenefitsAlso Receives Social Quantity Supplied If Taylor Quantity Supplied If Taylor Priced 300 250 200 150 100 Benefits 60 50 40 30 20 10 75 65 10 15 20 25 45 35 25 50Explanation / Answer
In equilibrium, qty supplies is equal to qty demanded. Equilibrium price is at the point where Qty supplies and Qty demanded intersects
1. Private benefits
Equilibium qty: 20
Equilibium price: 100
2. Social benefits also
Equilibium qty: 250
Equilibium price: 50
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.