b. For each unit of Negext produced, 5 units of pollution are emitted, and each unit of pollution imposes a cost on society of $1. Compute the total cost of pollution when the market is in equilibrium. c. Suppose that the government restricts emissions to 100 units of pollution. Graph the market under this constraint. Find the new equilibrium price and quantity and show them on your graph. d. Suppose that instead of restricting pollution, the government imposes a tax on producers equal to $5 for each unit of chemical produced. Calculate the new equilibrium price and quantity and the cost of pollution. e. Which of the two policies would you recommend? Why? QUESTION 3 - [20 marks @ 4 each part] Chapter 13 &14 Market for apple pies in the city of Ectenia is competitive and has the following demand schedule: Price Quantity demanded 1200 pies 1100 1000 900 800 70 600 500 400 10 300 11 200 12 100 0 Each producer in the market has fixed cost of $9 and the following marginal cost: Quantity Marginal Cost $2 4 8 10 12