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Consider the market for ATVs outside a national park. The supply and demand for ATVs are: Supply: P = 20+ 3Q Demand: P = 180

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Consider the market for ATVs outside a national park. The supply and demand for ATVs are: Supply: P = 20+ 3Q Demand: P = 180 - 5Q A. (4 points) What is the competitive equilibrium quantity? B. (3 points) ATVs inflict a negative externality through noise and air pollution. The marginal damages from ATVs are: MD = 2Q. What is the social marginal cost associated with ATVs? C. (4 points) What is the efficient number of ATVs? Refer to the graph below for questions D - F: SMC Supply A D E F G Demand D. (3 points) On the graph above, which area(s) correspond to the consumer surplus in the competitive equilibrium? MacBook Pro

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