A coal fire plant that produces electricity emits sulfer dioxide, which causes Acid Rain, into the atmosphere. The market equilibrium price of electricity is $6 per kilowatt hour (kWh) and the market equilibrium quantity is 10 kWh. The external cost generated by the Acid Rain is $1/kWh of energy produced. a. What type of externality is occurring here? Using a graph, show how the free market fails at allocating the efficient quantity of kWh. Label the appropriate areas that show the efficiency/inefficiency of the market. Is the market over or under producing in this situation? Explain. (Estimate a new price and quantity)