(3pts)The graph below represents the market of gasoline. The refinery process of converting crude oil to gasoline is associated with some negative externalities (volatile gas emissions) that are detrimental to human health and the environment.

1. With no consideration to the negative external cost imposed on society by gasoline production, what will be the efficient quantity and price of gasoline produced in the market.

2. How can society make sure that the refinery internalizes the negative external cost of producing gasoline?

3. What will be the most efficient quantity and price of gasoline produced after internalizing the negative externality of gasoline production?