The inverse demand for energy-efficient refrigerators is P = 2,000 – 10Q, where Q measures refrigerators per month. The inverse supply of energy-efficient refrigerators is P = 10Q. Suppose the use of an energy-efficient refrigerator reduces carbon dioxide emissions, generating an external marginal benefit of $100. The socially optimal quantity

Exploring Economics
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ISBN:9781544336329
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Chapter8: Market Failure
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Problem 2P: Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and...
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The inverse demand for energy-efficient refrigerators is P = 2,000 – 10Q, where Q measures refrigerators per month. The inverse supply of energy-efficient refrigerators is P = 10Q. Suppose the use of an energy-efficient refrigerator reduces carbon dioxide emissions, generating an external marginal benefit of $100. The socially optimal quantity of energy-efficient refrigerators is ____.

 

105

 

115

 

130

 

95 

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