a.  Graph the supply and demand curves, and calculate the equilibrium price and quantity. Make sure to label the y-intercepts and slopes. b. Suppose the consumption of diesel fuel creates carbon dioxide emissions that result in a negative externality of $6 per unit. Draw and label the implied social cost curve in your graph in part a, and calculate the socially optimal quantity of fuel. c.  Calculate the deadweight loss associated with producing at the market equilibrium instead of the socially optimal quantity.

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