Question: Let ( inverse ) demand be Pb = 1 0 2 - 1 Qb and ( inverse ) supply be Pv = 1 8 +

Let (inverse) demand be Pb =102-1 Qb and (inverse) supply be Pv =18+1 Qv. Consider the shift caused by an EXTERNAL COST of $ 14 per unit of output illustrated, what size of ( in $ per unit ) CORRECTIVE TAX would restore efficiency ?

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