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Reading a graph. Where do I find all of these on this graph? Consider the following graph of the market for chemical solvents, production of

Reading a graph. Where do I find all of these on this graph?

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Consider the following graph of the market for chemical solvents, production of which damages a waterbody used for recreation. Use the graph to answer the following questions. E MSC MPC MSB = MPB Q of chemical solvents MSC: Marginal Social Cost MPC: Marginal Private Cost MSB: Marginal Social Benefit MPB: Marginal Private Benefit OC: Quantity under Competitive Equilibrium QE: Socially Efficient Quantity a) What is the area representing the total loss of consumer surplus and producer surplus, from changing output from QC to OE? b) What is the area representing the reduction in damages to the environment, from changing output from QC to QE? What is the area representing the net welfare gain to society, from changing output from QC to QE? d) At QC, what represents the maximum payment recreational users of the river would be willing to pay the producer for a unit change in output

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