Suppose you are given the following supply and demand tables:
|
Demand
|
Supply
|
|
P
|
Q
|
P
|
Q
|
|
$0
|
25
|
$0
|
0
|
|
10
|
20
|
10
|
0
|
|
20
|
15
|
20
|
5
|
|
30
|
10
|
30
|
10
|
|
40
|
5
|
40
|
15
|
|
50
|
0
|
50
|
20
|
a) Assuming no externalities, what is the equilibrium quantity?
b) If the product above creates external benefits for consumers of $10 per unit, what would be the optimal quantity exchanged?