In the following figure,the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation. Figure 12.2 In the figure,
D: Demand curve for automobiles
S1: Supply curve of automobiles prior to regulation
S2: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-According to Figure 12.2,the total clean up cost for the society prior to regulation is:
A) area 0BEQ1.
B) area 0FIQ2.
C) area 0FGQ1.
D) area 0P1EQ1.
E) area 0CEQ1.
Correct Answer:
Verified
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