A newly established commercial drone-delivery hub in the coastal town of Seaburgh has faced intense backlash from local residents and businesses. The constant high-pitched buzzing from the fleet of 200 daily drone flights has severely disrupted the local ecotourism sector, particularly guided bird-watching tours along the cliffs, whilst also causing a significant decline in guest satisfaction at nearby cliffside boutique hotels.
Using the information in Extract A, draw an externalities diagram to show the likely impact of the drone-delivery hub on the local ecotourism and hospitality industries.
54 exam-style questions on Edexcel A A Level Economics 1.3.2 Externalities. Each one has a worked solution and a mark scheme showing where the marks go.