Question: Problem 1 Consider the following supply and demand schedule for steel: - Assume that the above supply and demand curves are linear between points and

Problem 1 Consider the following supply and demand schedule for steel: - Assume that the above supply and demand curves are linear between points and extend linearly to the price and quantity axes (and do not extend beyond the first quadrant (positive prices, positive quantities). - Pollution from steel production is estimated to create an external cost of $60 per ton. Graph the supply curve (marginal private costs), demand curve (marginal benefits), and marginal social cost curve; indicate the market equilibrium, and the social optimum graphically and numerically. ( 15 points)

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