-Refer to the above figure. The market equilibrium quantity is . Point represents the optimal amount of production. The government can achieve the optimal outcome by
A) setting the price at .
B) providing a per-unit subsidy to consumers equal to - .
C) providing a per-unit subsidy to consumers equal to - .
D) establishing a tax equal to - per unit of the good sold.

Question

-Refer to the above figure. The market equilibrium quantity is  . Point  represents the optimal amount of production. The government can achieve the optimal outcome by
A) setting the price at . 
B) providing a per-unit subsidy to consumers equal to - . 
C) providing a per-unit subsidy to consumers equal to - . 
D) establishing a tax equal to - per unit of the good sold.

Quizplus · Accepted Answer

The Answer of 
-Refer to the above figure. The market equilibrium quantity is  . Point  represents the optimal amount of production. The government can achieve the optimal outcome by
A) setting the price at . 
B) providing a per-unit subsidy to consumers equal to - . 
C) providing a per-unit subsidy to consumers equal to - . 
D) establishing a tax equal to - per unit of the good sold.

-Refer to the Above Figure