2.Suppose the market for oranges is perfectly competitive and unregulated. Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges. Suppose Q_D = 1000 - 100P and Q_S = -100 + 100P. The total dollar value damage to society is

a. 400

b. 450

c. 500

d. 550

3.Suppose the market for oranges is perfectly competitive and unregulated. Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges. Suppose Q_D = 1000 - 100P and Q_S = -100 + 100P. The price consumers would have to pay for the market to achieve the socially optimal level of production is

a. 5

b. 5.5

c. 6

d. 6.5

4.Suppose the market for oranges is perfectly competitive and unregulated. Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges. Suppose Q_D = 1000 - 100P and Q_S = -100 + 100P. The tax that would have to exist to achieve the socially optimal level of production would be

a. $0

b. $.50

c. $1

d. $2

5.Suppose the market for oranges is perfectly competitive and unregulated. Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges. Suppose Q_D = 1000 - 100P and Q_S = -100 + 100P. The "optimal" amount of environmental damage would be

a. $0

b. $40

c. $450

d. $500

6.Suppose the market for oranges is perfectly competitive and unregulated. Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges. Suppose Q_D = 1000 - 100P and Q_S = -100 + 100P. If regulators limited production to 200 bushels, the deadweight loss relative to the option of setting the optimal tax would be would be

a. $0

b. $200

c. $500

d. $1000