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Suppose that the graph below shows the market for cars in the United States. Driving causes an external cost over the life of each car,

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Suppose that the graph below shows the market for cars in the United States. Driving causes an external cost over the life of each car, in terms of pollution generated from emissions. Price ($) 40,000 36,000 32,000 28,000 24,000 20,000 16,000 Private Benefit 12,000 Social Benefit 8,000 4,000 5 10 15 20 25 30 Millions of cars a. Based on the graph, the external cost per car sold is $ b. If left to the private market, million cars will be bought and sold. c. The efficient number of cars bought/sold is million. d. The externality in this market generates a deadweight loss of $ million. [Note - enter your answer as calculated using the numbers on the graph. Don't try to convert the units into millions.]

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