Use the following diagram to answer the following questions.

-An emissions tax can bring about an efficient solution to the pollution problem because it:

Question

Use the following diagram to answer the following questions.
 
-An emissions tax can bring about an efficient solution to the pollution problem because it:

Quizplus · Accepted Answer

An emissions tax operates as a form of government intervention by adding a cost to the production of pollution, resulting in a higher price for consumers. This incentivizes producers to reduce the quantity of pollution they create, by making it more expensive to emit pollutants. This leads to a shift of the supply curve to the left, reducing the quantity of pollution produced and leading to a more efficient outcome. Thus, choice A is the correct answer.

Use the Following Diagram to Answer the Following Questions