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Solve clearly 6. Suppose market demand and market supplwr are given by the equations: o = on to P} o3 = we a. What are

Solve clearly

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6. Suppose market demand and market supplwr are given by the equations: o\" = on to P} o3 = we a. What are the market equilibrium quantity and price? Suppose there is an external cost of S [2 associated with the production ot'each unit of the good. b. What particular tan or subsidy would move the market to the social optimum? . What's the equation of the sockal cost curve? c d. What's the social cost of producing an units of the good? e. What are the socially optimal quantity and price? Also Show this in a diagram with demand curve, supply curve and social cost curve

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