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The market demand and supply of casino service are described by the following equations. ------------------------------------------------------------------------------- Demand: P = 845 0.3Q per unit of casino service

The market demand and supply of casino service are described by the following equations. ------------------------------------------------------------------------------- Demand: P = 845 0.3Q per unit of casino service Supply: P = 0.2Q 220 per unit of casino service ------------------------------------------------------------------------------- Because of the health problems associated with gambling, for each unit of casino service produced, an external cost of 265 dollars is generated. On the other hand, because of the positive spillover effect to the economy, the marginal external benefit is 0.15Q 265 dollars when Q units of casino services are consumed

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