Use following information for question 2-3.

2. The demand for honey is given by P=120-2Q and the supply of honey is given by P=30+2Q. The production of honey generates a positive production externality equal to Q, on the local growers of blueberries because bees from the honey farm pollinate the blueberry plants. To achieve an efficient level of trade in the honey market, I suggest:

a) a subsidy to the honey farmers

b) a tax on the honey farmers

c) a tax on the honey consumers

d) a subsidy to the blueberry farmers

e) a tradeable permit for the production of blueberries

3. The tax, subsidy, or tradeable permit that you suggested in question 2 should be equal to:

a) 30

b) 25

c) 40

d) 20

e) 35