500 0 Figure 2 18. Refer to Figure 2. Suppose the consumption of this good creates a negative externality of $3 per unit. What is the socially optimal amount? What is the market quantity that would be consumed without any regulation? a. Socially Optimal Quantity: 400; Market Equilibrium Quantity: 400 b. Socially Optimal Quantity: 400; Market Equilibrium Quantity: 500 c. Socially Optimal Quantity: 500; Market Equilibrium Quantity: 400 d. Socially Optimal Quantity: 500; Market Equilibrium Quantity: 600 19. Refer to Figure 2. Suppose the consumption of this good creates a negative externality of $3 per unit. Absent government regulation, what is the most that the 3rd parties damaged by the externality would be willing to pay to reduce the consumption of this good to zero? Assume that 3rd parties are independent of the buyers and sellers in this market. a. $0 b. $300 c. $1,200 (1. $1,500