The figure below shows the demand and supply of a certain product. 
a) If this depicts an unregulated market what would be the equilibrium price and quantity?
b) If this product was taxed by an amount equal to the external costs, what would be the equilibrium price and quantity?
c) Alternatively, if buyers of this product were subsidized by an amount equal to the external benefits, what would be the equilibrium price and quantity?
d) Finally, if this product were both taxed and subsidized by an amount equal to the external costs and benefits, what would be the equilibrium price and quantity?
Definitions:
Bedside Manner
The approach and attitude a healthcare professional uses when interacting with patients, emphasizing compassion, empathy, and effective communication.
Heterogeneity
Heterogeneity refers to the quality or state of being diverse in character or content, often used in various contexts to describe differences among individuals, populations, or data sets.
Technological Solution
An answer or fix to a problem that is achieved through technological tools, systems, or innovations.
Inseparable
In a service context, referring to the simultaneous production and consumption of services, indicating that services cannot be separated from their providers.
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