Assume excessively large SUVs include spillover costs that are not borne by the initial consumer but rather society as a whole. i)Use a supply and…

Assume excessively large SUVs include spillover costs that are not borne by the initial consumer but rather society as a whole.

i)Use a supply and demand graph to illustrate a negative externality. Identify the current price and output and the socially optimal price and output.

ii) Explain what the government must do to fix this negative externality. Draw a NEW GRAPH.