Refer to the above supply and demand graph.Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective.The amount of the subsidy to be given to consumers to correct this externality problem would be measured by:
A) AB.
B) GH.
C) EF.
D) IJ.

Question

Refer to the above supply and demand graph.Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective.The amount of the subsidy to be given to consumers to correct this externality problem would be measured by:
A) AB. 
B) GH. 
C) EF. 
D) IJ.

Quizplus · Accepted Answer

The Answer of  Refer to the above supply and demand graph.Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective.The amount of the subsidy to be given to consumers to correct this externality problem would be measured by:
A) AB. 
B) GH. 
C) EF. 
D) IJ.

Refer to the Above Supply and Demand Graph