Use the graph below to answer four questions. Price (per unit) 15 14 13 12 11...

  

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Use the graph below to answer four questions. Price (per unit) 15 14 13 12 11 10 9 87654321 0 1 Market supply Market demand 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Quantity (units per time period) Instructions: In part a, round your response to two decimal places. In parts b, c, and d, round your responses to one decimal place. a. What is the market price (market value) of the product? per unit b. What is the market output? unit(s) Assume that the product depicted above generates external costs in consumption of $5 per unit. c. What is the socially optimal output? unit(s) d. By how much does the market overproduce this good? unit(s) Use the graph below to answer four questions. Price (per unit) 15 14 13 12 11 10 9 87654321 0 1 Market supply Market demand 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Quantity (units per time period) Instructions: In part a, round your response to two decimal places. In parts b, c, and d, round your responses to one decimal place. a. What is the market price (market value) of the product? per unit b. What is the market output? unit(s) Assume that the product depicted above generates external costs in consumption of $5 per unit. c. What is the socially optimal output? unit(s) d. By how much does the market overproduce this good? unit(s)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a Market price 1100 per unit b Market o... View the full answer