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When Government Levies Pollution Taxes on Sellers to Eliminate the Inefficiency

Question 99

Multiple Choice

When government levies pollution taxes on sellers to eliminate the inefficiency from the cost of pollution,the result is


A) a lower price.
B) a smaller quantity produced.
C) a smaller cost of production.
D) a rightward shift of the supply curve.
E) leftward shifts of the supply and demand curves.

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