in october 2013, the city of irwindale, california filed a lawsuit against huy fong foods, makers of the popular sriracha hot sauce. production of the hot sauce takes place in irwindale, and residents surrounding the production facility claimed that a strong odor emanated from the facility caused burning eyes, headaches, and irritated throats. the city requested that production be halted until the factory figure out a way to mitigate the odor. huy fong foods denied that any odor existed. questions on sriracha news report: 1. what is the externality in the market for sriracha? a. sriracha is too spicy. b. americans buy too much sriracha. c. the sriracha factory creates an odor that impacts local residents. d. sriracha sales have increased dramatically in the last decade. 2. graph the market for sriracha, showing the external costs and identifying the private and social equilibrium in the market (for this question please upload and share your graph in order to earn full credit.) 3. according to your graph (please explain the reason for the answer you chose to question 3): a. social cost exceeds the social benefit at the private market equilibrium. b. social benefit exceeds the social cost at the private market equilibrium. c. social benefit exceeds the private benefit at the private market equilibrium. d. private cost exceeds the private benefit at the private market equilibrium. 4. describe ways to move the market to the socially efficient (lower quantity) equilibrium. e.g. government policies? coase theorem? market-based? please incorporate concepts from the course material on market failures.