Multiple Choice

-The figure above shows the market for the chemical hydrogen sulfide,the production of which creates an external cost.The government imposes the pollution tax shown in the above figure.What quantity is produced after the pollution tax is imposed?
A) zero pounds
B) 80 million pounds
C) 160 million pounds
D) more than 160 million pounds
E) more than 80 million pounds and less than 160 million pounds.
Correct Answer:
Verified
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