Greater consumption of alcohol leads to more motor vehicle accidents and, thus, imposes costs on people who do not drink and drive. a. Illustrate the market for alcohol, labeling the demand curve, the social-value curve, the supply curve, the social-cost curve, the market equilibrium level of output, and the efficient level of output. b. On your graph, shade the area corresponding to the deadweight loss of the market equilibrium. (Hint: The deadweight loss occurs because some units of alcohol are consumed for which the social cost exceeds the social value.) Explain.
CIS105 Notes Lecture: BobWood *Download* -Firefox -Excel 2013 or 2016 -Access 2013 or 2016 Assignments: -most assignments due 11:59 onTuesdays for full credit -due dates vary around holidays (check Digital Syllabus for path/ track) -does accept late assignments -feel free to email professor General Flow: -material introduced onWednesday orThursday -due the followingTuesday by 11:59 -after that 25 point penalty up to 8 hrs late -second chance to ask questions the followingWednesday or Thursday (week 2) -half credit if assignment completed by 11:59 the following Friday -anytime after = no credit! Resources: -Tutoring Center in building where class is held -Technology studio Check: -Digital Syllabus a few times a week -may have extra credit (easy points)