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The market for a particular chemical called negext is described by the following equations suppose that the government restricts emissions to 100 units of pollution. Graph the Negext market under this constraint. Find the new equilibrium price and quantity and show them on your graph. Compute how this policy affects consumer surplus,a nd the cost of pollution. Would you recommend this policy?Why?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M947764

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