1. Suppose that the supply curve {private marginal cost) for a manufactured good is given by PMC = 2 + Q and that the demand For the product is given by 05. = 12 P. Environmentai damage is represented by the Function MD = 1 + Q. a} Calculate the price and quantity that would appear in a market... at the intersection of supply and demand. In} What are the levels {calculate as a number. a graph may help in setting things up} of CS, PS. and environmental damage at the market outcome from you answer to {a}? c} Now calculate the price and quantity that are economically ellicient [what we have been labeling l\" and CI\" in class]. d} 1What are the levels {as a number} of CS. PS, and environmental damage at the efficient point in your answer to {c}? 2. In a sentence or two comment on the distributional effects of a policy to move from the market outcome to Q* in question 1 above. Which surpluses increase or decrease, and how would real- world households likely be impacted (i.e. what types of households will be more impacted by changes in consumer, producer, or environmental surplus)?3. Consider a public good [measured in quantity Q}, that is enjoyed by persons A and B with marginal benets: 49 HQc4 _ n HQE4 MB '1' M33 = l The good can he produced with marginal cost ME = Q. a} How much of the public good Q is provided privately1 and by whom? b} How much would be provided at the social optimum? What is the loss from the private market outcome? c} Graph the MB and MC curves. Draw an alternative MC curve {MC} where the private provision would equal the social optimum. Provide an example of a function for MC' where this is the case. d} If we increase the number of'people {for example by saying there are 2 or 3 other people like A and 3], cases like the one in {c} become unlikely. Briey eaplain why, use a graph if helpful