Question: Q 5 ( 2 0 points ) Suppose that the inverse market demand curve for cloth is p = 1 5 0 - 2 Q

Q5(20 points)
Suppose that the inverse market demand curve for cloth is p=150-2Q, the private marginal cost (unregulated competitive market supply) is =75+Q, and the private marginal damage from pollution is =2Q.
a.(8 points) What is the unregulated competitive equilibrium quantity and price?
b.(6 points) What is the social marginal cost of production and social equilibrium quantity and price?
c.(6 points) What specific tax t(per unit) would result in the social optimum?
 Q5(20 points) Suppose that the inverse market demand curve for cloth

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