ECS2606 Assignment 1 (COMPLETE ANSWERS) Semester 2 2026 – DUE 14 August 2026; 100% Correct solutions and explanations.

ECS2606 Assignment 1 (COMPLETE ANSWERS) Semester 2 2026 – DUE 14 August 2026; 100% Correct solutions and explanations. ASSIGNMENT 01/2026 (Second Semester) Submission date 14 August 2026 Marks 50 Prescribed Book Chapters 1 - 8 Study Guide Learning Units 1 - 8 Unique number 147584 Question 1 Read the excerpt below and answer the Questions that follow. Along the banks of the Jukskei River in Alexandra, Johannesburg, a man wades through murky water searching for bottles and scrap to sell. He says his name is Petrus and prefers not to have his surname published. “The water smells very bad,” he says. “Luckily, there are always things to recycle coming down the river, so I try to collect,” he said. “It gets dangerous after it rains as the water gets rough.” Across Gauteng, rivers carry untreated sewage, industrial waste and toxic chemicals through densely populated communities before draining into larger river systems that feed dams such as the Vaal and Hartbeespoort. River pollution in the province has become an environmental and public health crisis, driven by failing wastewater treatment works, ageing sewage infrastructure, rapid urbanisation, illegal dumping, industrial runoff and pollution from mining. Major rivers including the Jukskei, Klip and Hennops, as well as parts of the Vaal River system, now carry loads of sewage, solid waste, heavy metals and other contaminants. In many areas this has resulted in dangerous levels of E. coli and harmful algal blooms. 1.1 Explain the difference between market efficiency and social efficiency and draw a graph to illustrate the socially efficient levels of emissions. (10) 1.2 Explain how the market failed in the excerpt above and how this