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Please help with d-g Now we live in the times of COVID-19 and indoor dining exerts a negative externality. Specifically, the External Marginal Cost of

Please help with d-g

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Now we live in the times of COVID-19 and indoor dining exerts a negative externality. Specifically, the External Marginal Cost of eating each taco is constant and equal to 18. Line up this way Mask UP H Town ! aft Purple Taco Menu u Taco Beer Achooso 402, SIT oh d) Calculate the socially-optimal quantity of tacos, as well as the deadweight loss arising in the free- market equilibrium. Quantity= Deadweight loss= e) Suppose the government wants to use Pigouvian taxes to correct the externality. How high should the tax be per taco sold to bring the society to the socially-optimal quantity? What are the equilibrium prices paid by the consumers and received by the sellers?f) Calculate the new producer and consumer surpluses. Consumer surplus: Producer surplus: g) Now suppose that instead of using the tax, the government simply introduces a quota equal to the socially-optimal quantity of tacos, and the most efficient production is used What is the price, and What are the consumer and producer surpluses now? Price: Consumer surplus: Producer surplus: Problem 1 Consider again "Purple Taco", the best fusion taco joint in town. The demand curve for its tacos is given by QD:100-1.0P and the supply is given by QS:-10+1.6P. a) Find the price and quantity in the free market equilibrium. Price: Quantity; b) Calculate the consumer and producer surpluses. Consumer surplus: Producer surplus: 0) Calculate the price elasticity of demand and the price elasticity of supply at the market equilibrium. Price elasticity of demand: Price elasticity of supply

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