(Solved): Scenario 10-1 The demand curve for gasoline slopes downward and the supply curve for gasoline slop ...

Scenario 10-1 The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the \( 1,000^{\text {th }} \) gallon of gasoline entails the following: - a private cost of \( \$ 3.10 \) - a social cost of \( \$ 3.55 \) - a value to consumers of \( \$ 3.70 \) Refer to Scenario 10-1. Let QMARKET represent the equilibrium quantity of gasoline, and let QoPTIMUM represent the socially optimal quantity of gasoline. Which of the following inequalities is correct? a. QMARKET \( <1,000< \) QOPTIMUM b. QOPTIMUM \( < \) QMARKET \( <1,000 \) c. \( 1,000< \) QOPTIMUM \( < \) QMARKET d. QOPTIMUM \( <1,000< \) QMARKET