Elucidate equilibrium price and equilibrium quantity for cd

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Q. $50 External benefit = $10/shot Draw social value curve. Find socially optimal Q. What policy would internalize this externality?

Q. Price will increase; quantity cannot be determined. (Assume CD players are normal goods.) Which of following will happen to equilibrium price and equilibrium quantity for CD players?

 

Reference no: EM1372267

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