6. (4pts) Suppose the market for quality newspapers is perfectly competitive. The demand and supply for quality newspapers in millions per week is: 003) = 100 20p 50?) = 30? People who are better informed vote for better politicians and vote out bad politicians. Suppose this implies a marginal external benefit from the consumption of quality newspapers. Let the marginal external benefit be worth $1 per newspaper. a. (1pt) Solve for the equilibrium price and quantity in the market for quality newspapers. b. (1pt) Calculate the social surplus maximizing quantity? c. (1pt) Someone says that companies are not willing to provide enough quality newspapers at the equilibrium price. They suggest imposing a price-oor $2.40 to incentivize the companies to produce more quality newspapers. What would be the effect of this price floor on social surplus? i. Increase ii. Decrease iii. No effect d. (1pt) Describe a different policy to that in (c) for dealing with this issue. Provide the numerical values for this policy that achieve the social surplus maximizing outcome