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# Look at the two tables below, which show, respectively, the willingness to pay and willingness to accept of buyers and sellers of bags of oranges.

**a.** Given the equilibrium price of $10, what is the equilibrium quantity given the data above?

**Instructions: Enter only whole numbers in the table below.**

Equilibrium quantity = bags

**b.** What if, instead of bags of oranges, the data in the two tables dealt with a public good like fireworks displays?

**Instructions: Enter only whole numbers in the table below.**

If all the buyers free ride, what will be the quantity supplied by private sellers? Q* =

**c.** Assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed orange peels impose a negative externality on the public that must be rectified by imposing a $2-perbag tax on sellers..

**Instructions: Enter only whole numbers in the table below.**

What is the new equilibrium price? P* = $

What is the new equilibrium quantity? Q* = bags

If the new equilibrium quantity is the optimal quantity, by how many bags were oranges being overproduced before?

Q* = bag