Assume supply for steel is P= 5 + 0.1Q, and demand for steel is P=20 - 0.2Q. Calculate the values for the following questions, however, I suggest you draw a picture to help you with calculations.

a)(3 points) Find market equilibrium price and quantity. Find producer surplus, consumer surplus, and social surplus.

For the remainder of the question assume each unit of steel generates $3 additional costs in the form of CO₂emissions.

b)(7 points) What is socially efficient price and quantity in this case? How much will actually be produced? Find producer surplus, consumer surplus, and deadweight loss.

c)(10 points) The government decided to impose $3 Pigouvian tax. What is the price paid by consumers and received by producers once the tax is imposed? (Hint: What is the quantity that will be produces?). What is producer surplus, consumer surplus, and government revenue after the tax is imposed? Indicate on the picture (no need to calculate) what is third party surplus of tax policy.