In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation. Figure 26.2
In the figure,
D: Demand curve for automobiles
S1: Supply curve of automobiles prior to regulation
S2: Supply curve of automobiles after regulation
FG: Clean up cost per unit
According to Figure 26.2, the total clean up cost after the regulation is:
A) area 0FIQ2.
B) area 0FGQ1.
C) area BEC.
D) area BEP1.
E) area BEGF.
Correct Answer:
Verified
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