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Example + Supyore bret theve ave 100 people wh- drive cars wl vtilit, Conch) 2 .26P + Svppesethad thereare 100 people whe sv flee Grew pellutrn w/ tility Coach) v te 2 + HEE oj = - AEy, ) NOCHE HY > what is the effictent eat a olrivig ? Cassvere thed utility frarafers owe possible) = zoody,? -(102-2- (1%, Nie GG) ) a Vv loru, + 100 4 SE eer Flory, wo sc su Se Po 7. eee Woo 00 -(100y. “100 He a &,.000000 y -5=0 D GY) +5y. the wr driver's dernarl for car dria tes the velutiote mae OG - ry, Lag i Pa SEE (ay 5 y, seb The firm produces 4m interte\a—ownt Fou Ws 09-85, ee ges =. er se | saat LX \ 3 + lo Dy +) = om + [ce ! epils barge! nig, reasonably poor ble No. Too wory people invel veal, tos haval do coovdl inate. =D, Could the gevern a+ help2 yes! The government coud seta fay such that + yee that consumers panpeeee ee : we %ehs fe terscg3! scr 2y* SM keys 3F QM kY > TF MC C Supply) TCs et Se rs tiga)? 16 which pt? ese the 4vand indedver sae si 4 The purple one. tay of t. What happens? = re Brprt Gor evry oaiea aNd Dprelos 9c phe ewyy Sold Ei oe anit why? Because in boyy met 1003; + (00%, wt ged the prolction =f gasolice ts t fe every y oeld 2: recall yay Jn gencval iL we kvew the private ¥@) and we krow ow target y” then by choos i 4 > we inflvence P inary way we want D can gel arytey ©) jin patrol also to ylp) xy? iyilte Ts enc 0 > CEERI TELE TEER TEE Courses Theoven If there «+e AAA & If theve ave [AUMFRMAATERIZN & then the Povets elficied soltin can be obtained Qven withovt guvermmental indarvention jathe presence of adternnlsli as. rm AWFT for the Silverton wf eglerralities. Unwever: the conditie, «no transachion test property rights ansigped Renfree ave much move damn rdirs, + ea bel Ble copay of dhe 1 WAT. Softer it there we external ties: LPO0 mr epvernent interventions f 1 government inferverttions qve easier de jrplement than privde solutions. at leart wher mony people ave favo lved.

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