Note: The answer should be typed.

The graph below illustrates the private costs and benefits of producing Irisenian, a new miracle drug. a. Draw the MSB and MSC curves on the graph below, assuming that the external benefits are estimated at $50 per unit and the external cost at $20 per unit. Plot only the endpoints of the both curves and position those points on the edges of the graphing area. MPC MPD MSC 120 Tools 110 100 MSB MSC Price 10 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 O Quantity per period b. What are the most desirable price and quantity from society's point of view? Price: $ Quantity:[ c. If government wanted to increase the quantity to the amount in (bj above. what subsidy would it need to give to producers per unit? Value of subsidy: $[ d. If, instead, government wanted to increase the quantity to the amount in (b) above, what subsidy would it need to give to consumers per unit? Value of subsidy: $