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Figure 9 Price 63 Supply (private cost) 36 Social value (private value and external benefit 14 15 Demand private value) 240 420 Quantity 44. Refer

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Figure 9 Price 63 Supply (private cost) 36 Social value (private value and external benefit 14 15 Demand private value) 240 420 Quantity 44. Refer to Figure 9. Please answer all of the following: (a) Please identify the type of externality that this market has. (b) Please identify the dollar amount of the externality. (c) Is there too much or too little of a good in this market? By how much? (d) What can the government specifically do to eliminate this externality? Provide dollar amount. (e) Shade and label the deadweight loss region in this graph. Page 13 of 14Figure 10 1000 900 800 700 600 500 400 300 200 100 1000 2000 3000 4000 5000 6000 7000 8000 quantity 45. Refer to Figure 10. Please impose a tax on sellers in the amount $400. Then, identify all of the following: (a) Post-tax quantity equilibrium quantity (b) Post-tax sellers' price (0) Post-tax buyers\" price (d) Shade and label government revenue area (c) Shade and label deadweight loss area Page 14 of 14

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