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Suppose the market for dry cleaning has an inverse demand of P = 12 - 0

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Suppose the market for dry cleaning has an inverse demand of P = 12 - 0.10Q

and an inverse supply curve (MC) of P = 0.10Q,

where P is the price per article of clothing and Q is the quantity of clothing laundered.

Suppose the external marginal cost of dry cleaning is $0.80.

To correct the market inefficiency, the government could set a quota on the number of laundered pieces of clothing equal to:

a. 56.

b. 22.

c. 102.

d. 88.