Consider the market for toiletpaper, illustrated in the figure to theright, where S1 is marginal private cost and D1 is marginal private benefit.

Suppose toilet paper production creates a negative externality such that the difference between the marginal private cost of production and the marginal social cost of production is $100.

To bring about the efficient level ofproduction, the federal government could impose a tax

tax

subsidy

.

What should the value of the taxbe?$

100

100 per ton of toilet paper.(Enter a numeric response using aninteger.)

Use the line drawing tool to show how the tax specified above would affect the market for toilet paper by adding either a new supply curve or a new demand curve.

Carefully follow the instructionsabove, and only draw the required objects.