Consider the market for honey, which is in perfect competition.It costs $5 to make each jar of honey.The demand for honey is given by

D: P = 25 - 0.05Q

Each jar of honey generates $5 in positive externalitiesbecause honeybees pollinate nearby plants and crops, which we will model as increasing the social marginal benefit.For now, we will consider only what happens in the market equilibrium (not the market optimum).

What are the market equilibrium price and quantity?