Suppose that demand for a product is q140-6p and supply is, Ask an Expert

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Suppose that demand for a product is Q=140-6P and supply is Q=2P-20. Furthermore, suppose that the marginal external damage of consuming this product is $4 per unit. Does it result in under consumption? Or over consumption? How many more or less units of this product will the free market produce than is socially optimal? Calculate the deadweight loss associated with the externality.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91403144

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