Problem: The government is considering banning the use of throw away cups at coffee shops in order to reduce damages from garbage.
The marginal damage per kg of coffee cup garbage is given by MD = 19 + 0.02E. Emissions are currently at 258 units, and with the new law emissions would decrease to 84 units.
The ban would unfortunately decrease demand at coffee shops because not everyone would remember to bring their reusable cups and would therefore not be able to buy coffee. Demand before the law is P = 6 - 0.0025Q, and with the new law demand would decrease by 10%. Supply of coffee is P = 0.82 + 0.0015, and supply would not change.
Calculate the net benefit from the new law.