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3.) (40 points) The supply and demand for gasoline are given by: Demand: P = 100 - 4Q Supply: P = 0.1 + 0.05Q Suppose

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3.) (40 points) The supply and demand for gasoline are given by: Demand: P = 100 - 4Q Supply: P = 0.1 + 0.05Q Suppose the marginal external costs of gasoline consumption (in dollars per unit of gasoline) are $1.5 per gallon. Then, the total external costs of gasoline consumption are 1.5*Q. a.) Add as one column in Excel, the Pareto optimal allocation (after accounting for total external costs). b.) Add as a column in Excel the total external costs under the Pareto optimal allocation. c.) Add as a column in Excel the total wealth under the Pareto optimal allocation. d.) Add as two columns in Excel (one for price, one for quantity), the no policy competitive equilibrium. e.) Add as a column in Excel the consumer surplus under the no policy competitive equilibrium from d. f.) Add as a column in Excel the producer surplus under the no policy competitive equilibrium from d. g.) Add as a column in Excel the total external costs under the no policy competitive equilibrium from d. h.) Add as a column in Excel the total wealth under the no policy competitive equilibrium from d. i.) Consider a Pigouvian tax of r on gasoline. Construct a column of values of r from o.1 to 3 in Excel

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