As preferences for a clean environment increases,the socially optimal quantity of pollution will:
A)remain the same because it is not determined by preferences.
B)increase because of increasing opportunity costs.
C)decrease because the demand shift will generate a new social optimum.
D)either increase or decrease depending on whether that demand is reflected in new market prices.

Question

Quizplus · Accepted Answer

If preferences for a clean environment increase,the social benefit of pollution reduction,or demand,will shift to the right yielding a greater quantity of pollution reduction.

As Preferences for a Clean Environment Increases,the Socially Optimal Quantity