Refer to the Externality graph above. Algebraically, the intersection Price$=75$ and Quantity$=550,\_\_\_\_\_$and$\_\_\_\_\_.$

Question $37$ Answer

a$.$

D$2=$ S$,$ an overproduction and overallocation will exist

b$.$

S $=$ D$2,$ an underproduction and underallocation will exist

c$.$

S $=$ D$1,$ an overproduction and overallocation will exist

d$.$

D$1=$ S$,$ an underproduction and underallocation will exist