Q consider a market where demand is p 10 -2q and supply is, Ask an Expert

Economics

Q. Consider a market where demand is P = 10 -2Q and supply is P = Q/2. There is a consumption positive externality of $2.50/unit of consumption.

a. Calculate the market equilibrium.

b. What is the social optimum quantity and price?

c. If the government user a tax to get produces to internalize their externality, what is the net price received by producers?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M91949740

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