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Gun Violence Case Study

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The article describes how gun shops in Dallas surge in demand for artillery weapons after the Sandy Hook Elementary School shooting. A gun shop owner attributes the surge to customers fearing for their safety since the shooting in Newtown, Connecticut with concerns that guns will become more difficult to purchase.
According to gun shop owners the surge in guns arose due to the fact that customers are fearing for their own ‘personal security’ since shootings occurred in nearby towns and schools with the concern that guns would be more difficult to purchase, customers flooded gun-shop owners phone lines with prospective buyers inquiring about the same weapons.

Owning guns is a negative externality of consumption; an economics activity which imposes negative costs on third parties for which the consumer does not pay for. For instance, people who own guns and have children, of 18,330 incidents recorded by Gun Violence Archive, 202 children under the age of 11 have been killed or injured, in a lot of the cases the guns were not even locked away. If people had less access to purchasing artillery weapons these deaths would not of occurred. The Brady Campaign estimates that everyday, seven children and teens die from gun violence. Negative externalities are one of the sources of market failure because they are caused due to the overprovision of demerit goods; goods that are not only bad for consumers but third parties, which in this case is society. …show more content…
The external costs of gun ownership is ignored by gun owners, therefore social benefits are less than private benefits and the Marginal Social Benefit (MSB) lines lies below the Marginal Private benefit (MPB). The optimal amount of the consumption of guns is at the intersection of P* and Q*, where MSC=MSB and the market is at an equilibrium. Since, a larger of consumption of artillery weapons is at Q1, it leads to welfare loss represented by the red

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