If an emissions tax is too low:
A)there will be too little pollution.
B)there will be too much pollution.
C)the marginal social cost of pollution will be less than the marginal social benefit of pollution.
D)there could be either too much or too little pollution.

Question

Quizplus · Accepted Answer

If an emissions tax is set too low, it does not provide enough of a financial disincentive for polluters to reduce their emissions, leading to too much pollution.

If an Emissions Tax Is Too Low