New line D Quantity Suppose that the production of paper results in waste material being dumped into a nearby river. a. Assuming an unregulated market, the initial equilibrium quantity of paper produced will be too (Click to select) equilibrium price will be to0 (Click to select) ♥ and the b. Using the diagram above, show how this market externality could be corrected. Instructions: Using the tool provided 'New line' draw either a new demand or supply curve that takes into account both the priva cost and the social cost of paper production. Price ($)

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