Externalities, both negative and positive are considered, as is the associated lost surplus and deadweight loss generated by externalities. The efficacy of corrections to such markets including Pigouvian taxes and subsidies as well as establishing markets for pollution vouchers are considered.
This app contains 6 animated graphs with voice over that plays as graphs are drawn. Users can jump ahead to which ever graph or portion of graph is of interest.
Useful for any intermediate level undergrad micro economics course.
This app is based on Chapter 21 of _Microeconomics, An Intuitive Approach_, 2nd Ed by Thomas J. Nechyba, Department of Economics, Duke University, Durham, NC. However, the content is designed to be self-contained and stand alone. Without the text this app will still benefit students at the intermediate level studying externalities.