Hi my name is Stewart S. and I am in Mr. Sal’s Econ/Pod class Period 3. I will be answering a question about positive and negative extranalities and why the government regulates them. Industry can be split into two types of groups; negative extranalities and positive extranalities. Negative Extranalities are products that harm people or the enviroment. So the government would step in to try and regulate these negative extranalities since they harm the people who buy it and all the people in that products enviroment. The second group is whats called positive extranalities and these are products that help benefit people in some way, shape, or form. The government would regulate this so that more of these positive extranalites can be produced for people to have or uses.