The accompanying diagram shows the U.S.market for automobiles.P₀ is the world price of automobiles,Q₀ is the quantity of American automobiles produced,and Q₁ - Q₀ is the quantity of automobiles imported.Consumers are indifferent between American and imported automobiles,but each imported automobile creates $100 of pollution costs.

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The Answer of The accompanying diagram shows the U.S.market for automobiles.P₀ is the world price of automobiles,Q₀ is the quantity of American automobiles produced,and Q₁ - Q₀ is the quantity of automobiles imported.Consumers are indifferent between American and imported automobiles,but each imported automobile creates $100 of pollution costs.

The Accompanying Diagram Shows the U