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Suppose that there is a negative externality in the market for bags. The graph below shows the supply and demand curves for bags.

What is the market equilibrium quantity?

Hint

Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172

Enter DNE for Does Not Exist, oo for Infinity

What is the market price?

Hint

Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172

Enter DNE for Does Not Exist, oo for Infinity

What is the optimal (efficient) quantity?

Hint

Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172

Enter DNE for Does Not Exist, oo for Infinity

What should the government do in order to ensure the market produces the optimal (efficient) quantity?

Hint

Box 1: Select the best answer

How big should the government's corrective taxes or subsidies be in this case?

Hint

Enter DNE for Does Not Exist, oo for Infinity

As a result of this negative externality, the market

Hint

Box 1: Select the best answer