ENGLISH UNITED STATES EN US CMP Microeconomics ECO20220102

ENGLISH - UNITED STATES (EN US) CMP Microeconomics (ECO-202-20102) urses 18sUCMP ECO-202-20102 / Week 4 / Week 4 Problem Set A chemical plant has the following supply and demand table Answer the question based on the table below What is the equilibnum price and quantity when th suppliet is hot pajying the cost of pollution? Quantity Quantity Supplied without paying Quantity Supplied after paying e costs of the externality the costs of the externality $2.00 $4.00 $6.00 $8.00 $10 $12.00 Demanded 100 80 60 40 20 10 20 10 40 80 100 120 Paragraph

Solution

Equilibrium is where quantity demanded = Quantity supplied without paying the cost of externality.

Qd = Qs at $ 6.

So, equilibrium price is $ 6 and equilibrium quantity is 60 units.