Question: A market has the demand function Q-300-2P and the supply function Q-P-15. Production creates a positive externality of 12 per unit. (Round answers to

A market has the demand function Q-300-2P and the supply function Q-P-15. Production creates a positive externality of 12 per unit. (Round answers to

A market has the demand function Q-300-2P and the supply function Q-P-15. Production creates a positive externality of 12 per unit. (Round answers to 2 decimal places as necessary) What are the privately optimal equilibrium quantity and price? Q- P.M What are the price elasticities of demand and supply at the privately optimal equilibrium? Price elasticity of demand (e) = Price elasticity of supply (n) = Which side of the market is more elastic? What are the socially optimal quantity and price? Q= = To achieve the socially optimal quantity, should the government implement a tax or a subsidy? Of how much per unit?

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