A large dairy farming cooperative has been fined £150,000 following a major slurry leak that contaminated a 12-kilometre stretch of the River Wye. The pollution incident led to severe algae blooms, killing local trout populations and forcing the temporary closure of several riverside outdoor activity centres and campsites during peak summer holidays.
Using the information in Extract A, draw an externalities diagram to show the likely impact of the agricultural slurry pollution on the local outdoor recreation industry.
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.