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Figure 9.8 -Figure 9.8 Depicts a Market for Electricity. Assume Electricity Production

Question 296

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  Figure 9.8 -Figure 9.8 depicts a market for electricity. Assume electricity production incurs external costs. If the government imposes a pollution tax $T per mega kilowatt, A) the supply curve will shift to the right. B) the supply curve will shift to the left. C) demand curve will shift to the right. D) demand curve will shift to the left. Figure 9.8
-Figure 9.8 depicts a market for electricity. Assume electricity production incurs external costs. If the government imposes a pollution tax $T per mega kilowatt,


A) the supply curve will shift to the right.
B) the supply curve will shift to the left.
C) demand curve will shift to the right.
D) demand curve will shift to the left.

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