Multiple Choice
Table 10-4
-Refer to Table 10-4.Which of the following policies would move the market from the market equilibrium to the socially optimal equilibrium?
A) a tax of $2 per unit of output
B) a subsidy of $2 per unit of output
C) a tax of $7 per unit of output
D) a subsidy of $7 per unit of output
Correct Answer:
Verified
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