Principles of Microeconomics — Part 7: Public Goods & Externalities

The final part of the course examines when markets fail — and what to do about it. You'll classify goods along two dimensions (rival vs. non-rival, excludable vs. non-excludable) to see why private markets under-provide public goods and over-use common resources. You'll graph positive and negative externalities on the supply-and-demand diagram, then work through Pigouvian taxes, subsidies, and the Coase theorem as policy responses. By the end you can argue when the government should intervene, a