The figure given below shows the demand and supply curves of automobiles.Figure 13.3
In the figure,
D: Demand curve of automobiles
S: Supply of automobiles prior to the tax
S+t: Supply of automobiles after the tax

-The Clean Air Act of 1972 required some companies to install the "best available" pollution control technologies. This is an example of:

Question

The figure given below shows the demand and supply curves of automobiles.Figure 13.3
In the figure,
D: Demand curve of automobiles
S: Supply of automobiles prior to the tax
S+t: Supply of automobiles after the tax
 
-The Clean Air Act of 1972 required some companies to install the "best available" pollution control technologies. This is an example of:

Quizplus · Accepted Answer

The Clean Air Act of 1972 is an example of the government using the command approach to discourage a negative externality, which is pollution emitted by automobiles. This approach involves the government imposing regulations and standards on companies to reduce their negative impact on the environment, rather than relying on market mechanisms such as subsidies or taxes.

The Figure Given Below Shows the Demand and Supply Curves