Asked by
Maria Aramburo
on Dec 11, 2024
Verified
If government taxes a firm which pollutes this will
A) increase the demand for the good produced.
B) decrease the supply of the good produced.
C) increase the equilibrium quantity of the good produced in the market.
D) decrease the equilibrium price of the good produced in the market.
E) all of the above.
External Costs
Costs that are not borne by the producer or consumer of a good or service but by society, such as pollution.
Equilibrium Quantity
The quantity of goods or services that is supplied and demanded at the equilibrium price, where market supply and demand balance each other.
- Comprehend how government actions like taxation and subsidies influence market equilibrium.
Verified Answer
KT
Learning Objectives
- Comprehend how government actions like taxation and subsidies influence market equilibrium.