2.9 Market Failures 1. Consider the market for beer. Suppose that internal) demand is given by the equation Qp=300-15P, and internal) supply is given by the equation Qs =45 P, where P=the price of beer in dollars per bottle, and Q = the number of bottles of beer. (These equations can also be written as P=- Q+20 and P= 1s. a. What is the market equilibrium quantity of beer, in bottles? b. What is the market equilibrium price of a bottle of beer, in dollars per bottle? C. Now suppose that there is a negative externality associated with beer, equal to S2 per bottle. Write an equation that represents the total (social) supply. d. In addition to the negative externality, suppose that there is ALSO a positive externality associated with beer, equal to $1 per bottle. Find the efficient quantity of beer, in bottles, when there is both the positive and the negative externality e. What is the deadweight loss, in dollars, at the market equilibrium