If a good's production process results in pollution and the government taxes producers to pay for cleanup costs, then
A) consumers will purchase more of the good.
B) the price of the good will decrease.
C) supply will decrease.
D) more resources will be devoted to the product.
E) the quantity of the good produced will increase.
Correct Answer:
Verified
Q98: Suppose a candy producer's operation interferes with
Q99: Rights to the use of, sale of,
Q100: Who actually pays for an adjustment that
Q101: If burning coal creates a pollution externality,
Q102: Under a command and control restriction, firms
Q104: One alternative to command and control techniques
Q105: Reducing pollution by regulating what firms or
Q106: The most significant disadvantage of command and
Q107: When transactions costs are high or free-rider
Q108: If college education produces a positive externality,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents