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Suppose the demand for a product is qD = 1200 4p and supply is given by qs = 200 + 2p Suppose that the marginal

Suppose the demand for a product is qD = 1200 4p and supply is given by qs = 200 + 2p Suppose that the marginal external damage (MED) of producing this product is $8 per unit. Solve for the free market equilibrium Solve for the socially optimal equilibrium Calculate the DWL associated with the externality

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