Question
Demand for alcoholic beverages is given by P = 100 - Q. Supply is given by P = 20 + 0.1Q. Consumption of alcohol harms
Demand for alcoholic beverages is given by P = 100 - Q. Supply is given by P = 20 + 0.1Q. Consumption of alcohol harms third parties at the rate of 5 per unit. Find the socially optimal quantity of alcohol consumption that occurs.
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Get StartedRecommended Textbook for
Modern Principles Of Microeconomics
Authors: Tyler Cowen, , Alex Tabarrok
3rd Edition
1429278412, 978-1429278416
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