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D Question 16 3 pts Price Supply (Private Cost) Social Value Demand (Private Value) Q1 Q2 Q3 Quantity Which quantity is socially optimal? Question 17 w Question 17 3 pts To internalize the externality in this market, the government should impose a tax on this product. provide a subsidy for this product. O forbid production. O produce the product itself. Question 18 10 pts TP 14 12 - 10 - A D. 00 10 20 30 40 50 60 70 Q D Question 18 10 pts 14 12 10 8 2 10 20 30 40 50 60 70 Q Assume a tax of $6 per unit is imposed on this market. 1. What will be the new quantity exchanged in this market? 2. What will be the new price that buyers pay? 3. What will be the new price that sellers receive? 4. How much of the tax will buyers pay? 5. How much of the tax will sellers pay