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Question 4: The graph below shows the market for coal. Burning coal to generate power causes air pollution that harms people who were neither producers nor consumers of the power. Suppose that each ton of coal causes $50 of damage to people outside the coal market. P 5:50 "' 5100 S 50 D Q ml 1' + 1' 1' [000 2000 3000 4000 5000 a. Explain verbally and illustrate on the graph how exactly,r the coal market fails. What is wrong with the market price and quantity? 1). Suggest a possible government intervention that would improve resource allocationin the coallsiii market. 'Ec 1