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The Market of Gasoline in the Sate of Maryland is described by the figure below:The market equilibrium without market intervention is: 100 million of gallons
The Market of Gasoline in the Sate of Maryland is described by the figure below:The market equilibrium without market intervention is: 100 million of gallons per year at $5 per gallon. The government estimates that the cost of the externality per gallon of gasoline consumed is $1.The deadweight loss produced by this negative externality is equal to:
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