1. The government of Bangladesh believes that production of its exportable good (Jute) generates positive externalities in its country. The world price of this good is $25. The external benefit is believed to be $2.5 per unit produced. At the free trade equilibrium, domestic consumption and production of the good are equal to 10 million units and 20 million units respectively. The demand and supply elasticities at this initial equilibrium are 2 and 1.5 respectively. You may assume that Bangladesh is small in the market for its exportable. a. Using the relevant supply and demand curves, illustrate the market outcome. Is this equivalent to the socially optimal outcome? Intuitively, why