The following equations represent supply and demand


The following equations represent supply and demand functions for electricity in a certain city:

            P = 100 + 0.3 Q   (supply function without external costs)

            P = 120 + 0.3 Q   (supply function with external costs)

            P = 250 - 0.2 Q (demand function)

Compute the net surplus (= PS+CS - total environmental external costs) at private market equilibrium and social efficient market equilibrium.

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Business Economics: The following equations represent supply and demand
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