The purpose of an effluent fee is to
A) reduce the amount produced of a good and to raise the market price.
B) correct for pollution while keeping the price of the good the same as before the correction.
C) reward people producing externalities.
D) encourage producers to keep the quantity produced the same while lowering the price.

Question

Quizplus · Accepted Answer

Effluent fees are designed to reduce the production of goods that cause pollution, thereby also affecting the market price by potentially raising it due to reduced supply or increased production costs.

The Purpose of an Effluent Fee Is to