Use the purple points (diamond symbol) to plot the social cost curve when the external cost is $700 per unit. 2000 800 1600 Social Cost 1400 1200 PRICE (Dollars per unit of electric cars) 1000 Supply (Private Cost) 800 600 O Demand 400 (Private Value) 200 N O QUANTITY (Units of electric cars) The market equilibrium quantity is 4.5 _ units of electric cars, but the socially optimal quantity of electric car production is units. To create an incentive for the firm to produce the socially optimal quantity of electric cars, the government could impose a of per unit of electric cars. Grade It Now Save & Continue Continue without saving