the highest level c h egan chin Shanghai les to the south Eve r t Agency that, trees y role in d ie Shanghai og Planting a tree improves the Checs transform greenhouse g y v ew and prove soil quity Assume that the value of this vi c al to Shanghai 515 for the expected time of the tree. The following abypothetical demand schedule for trees to be a Tocal 12") the Quity of trees demanded thousands) 12 54524 530 525 48 SIO 60 SO72 ) Assume that the marginal cost of producing a tree for planting is constant at $45. Draw a diagram that shows the market equilibrium quantity and price for trees to be planted (4) What type of externality is generated by planting a tree? Draw a diagram that show the optimal number of trees planted. How does this differ from the market outcom your diagram from part b, indicate the optimal Pigouvian tax subsidy (as the ay be). Explain how this moves the market to the optimal outcome. (2) the highest level c h egan chin Shanghai les to the south Eve r t Agency that, trees y role in d ie Shanghai og Planting a tree improves the Checs transform greenhouse g y v ew and prove soil quity Assume that the value of this vi c al to Shanghai 515 for the expected time of the tree. The following abypothetical demand schedule for trees to be a Tocal 12") the Quity of trees demanded thousands) 12 54524 530 525 48 SIO 60 SO72 ) Assume that the marginal cost of producing a tree for planting is constant at $45. Draw a diagram that shows the market equilibrium quantity and price for trees to be planted (4) What type of externality is generated by planting a tree? Draw a diagram that show the optimal number of trees planted. How does this differ from the market outcom your diagram from part b, indicate the optimal Pigouvian tax subsidy (as the ay be). Explain how this moves the market to the optimal outcome. (2)