Question
Assume that the current global demand for fossil fuel (in billions of barrels per year) is given by the equation: Q = 400 - P
Assume that the current global demand for fossil fuel (in billions of barrels per year) is given by the equation:
Q = 400 - P
and the current world supply of oil is given as
Q = -100 + 4P
If the dollar value of the marginal environmental damage associated with burning fossil fuels is given as
MD = 1.25Q
and if environmental damage exists as an externality, what is the dollar value of the environmental damage that would occur at the market equilibrium?
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Intermediate Microeconomics and Its Application
Authors: Walter Nicholson, Christopher M. Snyder
12th edition
978-1133189022, 1133189024, 1133189032, 978-1305176386, 1305176383, 978-0357687000, 978-1133189039
