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15 Price (dollars per unit) 12 9 6 D O 40 80 120 160 Quantity (thousands of units per week) Ba. Is the externality positive

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15 Price (dollars per unit) 12 9 6 D O 40 80 120 160 Quantity (thousands of units per week) Ba. Is the externality positive or negative? 8b. What is the unregulated quantity of trade? 8c. What is the unregulated price of trade (per unit)? 8d. What is the size of the deadweight loss at the unregulated equilibrium? 8e. What is the socially efficient quantity of trade? 8f. If a corrective tax is used to internalize the externality, what would the size of the per-unit tax need to be reduce the equilibrium quantity to the efficient level? Blank # 1 Blank # 2 AJ Blank # 3 A/ Blank # 4 A/ Blank # 5 A/ Blank # 6 A/

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