Suppose that in greater Sydney, the demand for flowering plants is given by P = 60 - Q, and supply is given by P= 0.2Q, where Q represents thousands of plants. Because people enjoy seeing flowers as...

Extracted text: Suppose that in greater Sydney, the demand for flowering plants is given by P = 60 - Q, and supply is given by P= 0.2Q, where Q represents thousands of plants. Because people enjoy seeing flowers as they pass by others' houses, these plants produce a positive externality. Suppose that each plant produces a marginal external benefit equal to $6. 1. What will be the market price and the quantity supplied of flowering plants? 2. What is the socially optimal number of plants?