Y7

Production of Commodity X creates 10 pounds of emission for every unit of X produced. The demand and supply curves for X are described below in the following table.

Price	Quantity Demanded	Quantity Supplied
$10	80	100
9	85	95
8	90	90
7	95	85
6	100	80
5	105	75

Suppose the government imposes a tax of $2 per unit of production. Suppose further that producers pay the full incidence of the tax. If the producer of X received only $7 after tax,

A. what level of output will they produce or supply.

B. What will be the total amount of emissions at this level of output. How does this level of pollution emissions compared to the situation prior to the imposition of the taxes?