Consider the following market demand and market supply: Demand: p = 90-q Supply: p = 20+3q Suppose consumers fail to recognize external benefits of $20, what is the efficient equilibrium quantity (qeff)?
Consider the following market demand and market supply: Demand: p = 90-q Supply: p = 20+3q Suppose consumers fail to recognize external benefits of $20, what is the efficient equilibrium quantity (qeff)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:Consider the following market demand and
market supply:
Demand: p = 90-q
Supply: p = 20+3q
Suppose consumers fail to recognize
external benefits of $20, what is the
efficient equilibrium quantity (qeff)?
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