Market solutions to correct for negative externalities

This problem asks you to examine the costs in the market for gasoline.

The cost of consuming gasoline comes in two parts:

\fAccording to the graph, if the government does not intervene in the market for gasoline, the equilibrium price of a gallon of gasoline will be $ and drivers will buy million gallons.Which of the following statements correctly describe(s) the market for gasoline? Check all that apply. The marginal social cost of gasoline is greater than the marginal private cost. Society prefers more gasoline than the market outcome of gasoline being produced. At the market quantity, the marginal private cost of gasoline exceeds the market price. The market outcome is not socially efficient. \fAccording to the previous graph, in order to achieve the efficient quantity of gasoline, the government should impose a tax of per gallon. 1. First, the driver pays the market price for a gallon of gasoline. 2. In addition, other people who live in the area bear a cost because they suffer from the pollution created by consuming gasoline; this is the external cost of consuming gasoline. Both the tax and the quantity restriction policy are solutions to overpollution. Based on the previous graph, which policy is more successful in ensuring that the efficient quantity of gasoline is consumed, and that the people who consume it are those who derive the most value from it? The tax The quantity restriction system Both policies are equally successful