Refer to the provided supply and demand graph. S₁ and D₁ represent the current market supply and demand, respectively. S₂ and D₂ represent the socially optimal supply and demand. One way that the government could shift supply to its socially optimal level is to
A)tax the sellers.
B)subsidize the buyers.
C)provide the product.
D)regulate the production of the good.

Question

Refer to the provided supply and demand graph. S₁ and D₁ represent the current market supply and demand, respectively. S₂ and D₂ represent the socially optimal supply and demand. One way that the government could shift supply to its socially optimal level is to
A)tax the sellers. 
B)subsidize the buyers. 
C)provide the product. 
D)regulate the production of the good.

Quizplus · Accepted Answer

The Answer of  Refer to the provided supply and demand graph. S₁ and D₁ represent the current market supply and demand, respectively. S₂ and D₂ represent the socially optimal supply and demand. One way that the government could shift supply to its socially optimal level is to
A)tax the sellers. 
B)subsidize the buyers. 
C)provide the product. 
D)regulate the production of the good.

Refer to the Provided Supply and Demand Graph