1. Suppose you are selling t-shirts at your own t-shirt stand. The supply and demand curves for t-shirts are given below. P = 10 + 0.2 Q P = 20 – 0.2 Q a. What is the equilibrium quantity for t-shirt Number What is the equilibrium price for t-shirts? Number If the process of making your t-shirts results in chemical waste that you dump in a nearby stream, creating $ 8 worth of damage to the environment per shirt, what is the socially optimal number of t-shirts for you to sell? C. Number
1. Suppose you are selling t-shirts at your own t-shirt stand. The supply and demand curves for t-shirts are given below. P = 10 + 0.2 Q P = 20 – 0.2 Q a. What is the equilibrium quantity for t-shirt Number What is the equilibrium price for t-shirts? Number If the process of making your t-shirts results in chemical waste that you dump in a nearby stream, creating $ 8 worth of damage to the environment per shirt, what is the socially optimal number of t-shirts for you to sell? C. Number
Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
Problem 10P
Related questions
Question
![1.
Suppose you are selling t-shirts at your own t-shirt stand. The supply and demand curves for t-shirts are given below.
P= 10 + 0.2 Q
P= 20 – 0.2 Q
a.
What is the equilibrium quantity for t-shirt
Number
b.
What is the equilibrium price for t-shirts?
Number
If the process of making your t-shirts results in chemical waste that you dump in a nearby stream, creating $ 8 worth of damage to the environment per
shirt, what is the socially optimal number of t-shirts for you to sell?
C.
Number
d.
Given the chemical waste in part c., what is the socially optimal p
Number
e.
What tax policy could the government use to assure that you sell the socially optimal number of t-shirts?
for List](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2d1fa89-e918-446a-8b9a-49011a0bf867%2F4c5fcd45-5867-4c42-b6a0-99009015699c%2Fbytdoya_processed.png&w=3840&q=75)
Transcribed Image Text:1.
Suppose you are selling t-shirts at your own t-shirt stand. The supply and demand curves for t-shirts are given below.
P= 10 + 0.2 Q
P= 20 – 0.2 Q
a.
What is the equilibrium quantity for t-shirt
Number
b.
What is the equilibrium price for t-shirts?
Number
If the process of making your t-shirts results in chemical waste that you dump in a nearby stream, creating $ 8 worth of damage to the environment per
shirt, what is the socially optimal number of t-shirts for you to sell?
C.
Number
d.
Given the chemical waste in part c., what is the socially optimal p
Number
e.
What tax policy could the government use to assure that you sell the socially optimal number of t-shirts?
for List
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