A fertilizer plant emits a very foul odor during the production process.If the government forces the plant to internalize the negative externality,then the

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Internalizing the negative externality would increase the cost of production for the fertilizer plant. As a result, the supply curve for fertilizer would shift up, meaning that the equilibrium quantity of fertilizer sold would decrease and the equilibrium price would increase. The demand curve for fertilizer would not be directly affected by the internalization of the negative externality.

A Fertilizer Plant Emits a Very Foul Odor During the Production