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16. Consider the graph below (labeled lGraph B), which depicts an abatement market like the ones we discussed in class around the Weitzman model. {I.e.,

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16. Consider the graph below (labeled lGraph B), which depicts an abatement market like the ones we discussed in class around the Weitzman model. {I.e., assume there is no market for abatement absent policy, so the tax or permit price is the only driver of abatement, and the market will end up on the true cost curve.) Two possible marginal cost curves are shown, along with the expected marginal cost curve. 011 the graph, along the Xaxjs, denote the quantities that would occur if (i) there was a price policyr and the true marginal cost was high, (ii) there was a price policy and the true marginal cost was low, (iii) there was a quantity policy and the true marginal cost was high, (iv) there was a quantity policy and the true marginal cost was low. N ext, shade and label the area representing deadweight loss for (v) the case where there is a price policy and the true marginal cost was high and (Vi) the case where there is a quantity policy and the true marginal cost was high. Upload an image. {* 4 points)

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