When a Pigovian tax is levied on a market, price _______ and quantity _______ to the efficient level.

Name: When a Pigovian tax is levied on a market, price _______ and quantity _______ to the efficient level.
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A Pigovian tax is imposed to correct the negative externalities of a market activity. It increases the cost of production, leading to a higher price for consumers and a decrease in the quantity produced and consumed, moving both towards a more socially efficient level.

When a Pigovian Tax Is Levied on a Market, Price