Figure 9.9 shows the demand and supply of a product in a competitive market.
-Refer to Figure 9.9 to answer the question.Suppose this graph represents a polluting industry and that the government wishes to decrease its output by 10 units.Which of the following will produce this result?
A) Imposing an excise tax of $2.
B) Imposing an excise tax of $1.
C) Granting a subsidy of $2 to producers.
D) Granting a subsidy of $1 to producers.
E) Granting a subsidy of $2 to consumers.
Correct Answer:
Verified
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