(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
To reduce the volume of music, the sorority is taxed per 3 dollars per decibel. What is the effect on the volume of music?
(Description)
The following text is written:
The college imposes a Pigouvian tax of 3 dollars per decibel of music played. Determine the volume of music the sorority will now choose?
(Speaker)
We will start by reproducing the graph from before.
(Description)
The graph from the previous slide is shown.
(Speaker)
The tax increase the cost of turning up the music by 3 dollars. We can draw a line, starting at 3 dollars, across to the MSB line to find the new volume of music.
(Description)
A straight line extending from 3 dollars on the vertical axis is drawn. It is parallel to the horizontal axis. It intersects both, MSC, and, MSB, lines. It intersects line, MSB, at point with coordinates, 96 and 3. It is labeled as With a tax of 3 dollars per decibel, the private marginal cost is now 3 dollars.
A dotted straight line extending from 96 decibels on the horizontal axis is drawn. It is parallel to the vertical axis. It intersects both lines, MSB, and the line extending from 3 dollars on the vertical axis, at point with coordinates, 96 and 3.
(Speaker)
The sorority will still turn the volume up to 96 decibels, which is greater than the socially desirable equilibrium of 95 decibels.