So that residents of the Sunnyside neighborhood can maintain a manicured lawn, some residents purchase a gas engine leaf blower. Assume the market for gas engine leaf blowers is perfectly competitive.

(a) Draw a correctly labeled graph of the market for gas engine leaf blowers and show the market equilibrium quantity and price, labeled Q1 and P1.

(b) Assume that the noise from the gas engine leaf blowers disturbs all the neighbors as well as generating large amounts of air pollution and particulate matter. On your graph in part (a), show each of the following.

(i) The marginal social cost curve, labeled MSC

(ii) The marginal social benefit curve, labeled MSB

(iii) The deadweight loss, if any, shaded completely

(c) Now instead assume that all the neighbors appreciate the well-manicured lawns maintained by the gas power leaf blower.

(i) In this case, is the market equilibrium quantity of gas power leaf blowers greater than, less than or equal to the socially optimal quantity? Explain.

(ii)In this case, if the government bans gas engine leaf blowers, will the deadweight loss increase, decrease, or remain unchanged?