Environment Canada Has Proposed Strict Controls on the Amount of Sulphur

question 79

Multiple Choice

Environment Canada has proposed strict controls on the amount of sulphur contained in diesel fuel.The effect of the regulation is estimated to increase the equilibrium price of a litre of diesel fuel by 10 cents.Assuming the supply curve of diesel fuel has a positive slope and the demand curve has a negative slope,one can infer that

• A) the external benefit of diesel fuel is less than 10 cents.
• B) the external cost of diesel fuel is greater than 10 cents.
• C) the external cost of diesel is less than 10 cents.
• D) the external cost of diesel is equal to 10 cents.
• E) the external benefit of diesel is equal to 10 cents.

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Definitions:

Patient Activism

The actions taken by patients or health consumers to advocate for improvements in healthcare services, policies, and treatment options.

Medical Establishment

The collective institutions, including hospitals, clinics, medical schools, and regulatory bodies, that define and regulate health care practices.

Increased Life Expectancy

A rise in the average number of years that individuals within a population are expected to live.

Degenerative Conditions

Degenerative conditions are illnesses or diseases characterized by the progressive deterioration of function or structure of affected tissues or organs.