Question: Let ( inverse ) demand be Pb = 1 0 4 - 4 Qb and ( inverse ) supply be Pv = 2 4 +

Let (inverse) demand be Pb =104-4 Qb and (inverse) supply be Pv =24+2 Qv. Consider the shift caused by an EXTERNAL COST of 8 per unit of output illustrated, how much DWL is caused by the EXTERNALITY ?

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