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2.(a)Draw the case of a perfectly competitive market that operates, without government intervention, at an equilibrium price of $5 per unit and an equilibrium quantity

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2.(a)Draw the case of a perfectly competitive market that operates, without government intervention, at an equilibrium price of $5 per unit and an equilibrium quantity of 200,000 units. (T: /1) (b)If this product has spillover benefits of an extra $3, draw the new demand curve on your graph that incorporates these spillover benefits. Pinpoint the preferred outcome on your graph. (T: /1) (c)Outline one government policy that could be used to ensure that the market reaches this preferred outcome. (A: /1)

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