3. Static Market Equilibrium & Externalities Let demand for a good he represented by Q = 40 - 2p Inverse supply is: P = 5 + (2/3 a. What is the equilibrium price and quantity? b. Calculate Consumer Surplus, Producer Surplus, and Total Social Welfare? 0. Show all of this in a graph. Now suppose each unit of production generates 2 + 2Q/3 of harm. d. What is Total Surplus if the harm is not factored into the production decision? e. Find the marginal societal cost MCs. f. Illustrate this new cost curve on your graph, showing all 3 MC lines. g. Find the societally optimal equilibrium price and quantity. 4 --- 4n