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Suppose the MPB of gasoline consumption is 17-2q , the MPC of gasoline is constant 2 + 5Q , and the MSC of gasoline consumption is MSC = 2 + Q
a. What is the market equilibrium price and quantity of gasoline consumption?
b. What is the socially efficient price and quantity of gasoline consumption?
c. What is the deadweight loss at the market equilibrium?
d. What per-unit tax will yeild the socially efficient quantiyt of gasoline consumption?
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