If the government decides to adopt a carbon tax,the price of goods whose production generates carbon emissions will ________ and the quantity produced will ________.

Question

Quizplus · Accepted Answer

The purpose of a carbon tax is to increase the cost of production for goods that generate carbon emissions, thereby reducing the demand for such goods and promoting the production of cleaner alternatives. As a result, the price of goods that generate carbon emissions will increase, and the quantity produced will decrease. Therefore, the correct choice is B.

If the Government Decides to Adopt a Carbon Tax,the Price