Suppose that government officials have set an emissions tax to reduce pollution.Assume that the optimal tax would be $500,but government officials have set the tax at $900.At the equilibrium with the $900 tax:
A)there will be too much pollution.
B)the marginal social cost of pollution will be less than $900.
C)the marginal social benefit of pollution will be $900.
D)the marginal social benefit of pollution will be more than $900.

Question

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The Answer of Suppose that government officials have set an emissions tax to reduce pollution.Assume that the optimal tax would be $500,but government officials have set the tax at $900.At the equilibrium with the $900 tax:
A)there will be too much pollution.
B)the marginal social cost of pollution will be less than $900.
C)the marginal social benefit of pollution will be $900.
D)the marginal social benefit of pollution will be more than $900.

Suppose That Government Officials Have Set an Emissions Tax to Reduce