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Price and cost (dollars per tonne) 1.400 0 2 4 6 8 10 Quantity (tonnes per clay) The graph shows the market for fertilizer, where

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Price and cost (dollars per tonne) 1.400 0 2 4 6 8 10 Quantity (tonnes per clay) The graph shows the market for fertilizer, where extemalities are present. (9 Marks) a) If the market was unregulated, what is the equilibrium price and quantity? (2 Marks) b) If the market was regulated, what will be the resulting market price and quantity? (2 Marks) c) Calculate the total per unit tax, consumer's burden, producer's burden, and government tax revenue. (4 Marks) d) If the D = MB curve is perfectly inelastic instead of the downward sloping curve in the graph above, who will bear the entire tax burden? (1 Mark)l

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