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otherwise marked. The last pa Scenario A Magic wands sold in the Central Continent of Humans has the following inverse supply and demand P = 50- 0.5Q Inverse Demand P = 5+0.1Q Inverse Supply where Q is the quantity of wands and p is the price per want. The problem with wands is they can cause mana explosions that are an externality. The cost of these explosions is greater the more wands that are bought and sold. Suppose the marginal external cost is given by: MEC=13 + 0.2Q 1. (2 points) What will be the equilibrium in the market for wands? p = Q = 2. (2 points) What is the efficient quantity of Wands and deadweight loss resulting from the equilibrium above? Efficient Q = DWL = 3. Suppose the government wishes to impose a tax to guide the market to the efficient quantity of wands. What tax (per unit) would lead to the efficient number of wands? Tax per wand = 4. To get the efficient number of wands sold, who should the government impose that t (pick one) (A) Consumers/Demand should pay the tax (B) Sellers/Supply should pay the tax (C) It doesn't matter, both options lead to the efficient quantity (D) The government should impose the tax on both sellers and buyers (E) The more elastic of the curves should pay the tax With the tax, what is the deadweight loss? DWL =