For this assignment, first play the simulation games Externalities Without Policy Interventions and Externalities With Policy Interventions in the MindTap environment. Then you will report your experiences playing those games. Your work in this assignment will directly support your success on the course project.

In your submission, remember to include the images of your simulation reports. See the How to Submit a Simulation Report Image document for more information. Then, reflect on the decisions you made in the simulation and address the following government intervention options in your submission:

  • Government Tools: Discuss tools available to the government to correct a market failure. Provide examples from the textbook.
  • Supply and Demand Equilibrium: Describe how government intervention affects the supply and demand equilibrium. Refer to the simulation game to explain your responses.
  • Consumer or Producer Surplus: Specify which government interventions cause a consumer or producer surplus. Explain how they impact consumer or produce surplus. Provide examples from the textbook.


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