As a result of the gasoline tax in BC, ________ would bear more of the external cost of pollution and the gap between the marginal private cost of pollution and the marginal social cost of pollution would ________.

Question

Quizplus · Accepted Answer

The gasoline tax in BC would likely be passed on to consumers in the form of higher prices, meaning consumers would bear more of the external cost of pollution. This would help internalize the externality, thus narrowing the gap between the marginal private cost and the marginal social cost of pollution.

As a Result of the Gasoline Tax in BC, ________