and demand for regular tires drops to P = 200 - 0.0005Q . If there are 3 units of emissions for each regular tire , by how much are emissions reduced ? Emissions standard question . There are two firms located in different towns . For the firm in town 1, MAC = 400 - E and MD = 0.5E . For the firm in town 2, MAC = 300 - E and MD = 0.8E . a) Draw both graphs and calculate E* for each town b) Calculate the excess costs in each area if a uniform standard is set at E = 200 . Show on each graph . 8. Emissions tax question . Polluter 1 has abatement costs given by MAC 1 = 200 - 5E 1, and polluter 2 has abatement costs given by MAC 2 = 160 - 4E 2