News article - http://bit.ly/2Nf880f

Graph - http://bit.ly/2MNtbYd

7.1 If the policy is implemented, what is the price-quantity combination determined by the market?A.P4, Q2B.P2, Q2C.P3, Q3D.P3, Q1

7.2If the policy is implemented, what is the price that buyers pay? A.P1B.P2C.P3D.P4

7.3 If the policy is implemented, what is the price that sellers receive?A.P1B.P2C.P3D.P4

7.4 if the policy is implemented, what is deadweight loss generated by the externality?A.A+B+C+DB.C+DC.CD.Zero

7.5 Given the stylised representation provided in the graph above, which of the following sentences is more accurate about the burden of the policy?

A.the burden of the policy falls more heavily on buyers of high-emission cars

B.the burden of the policy falls more heavily on sellers of high-emission cars

C.the burden of the policy is equally shared between buyers and sellers of high emission cars

D.the burden of the policy is equal to zero because the externality is fully internalised

7.6 Does the article provide sufficient information to conclude how the burden of the policy would be actually split between buyer and sellers if the policy were implemented?A.YesB.No