If a Polluting Producer Is Forced to Pay a Pollution

question 195

Multiple Choice

If a polluting producer is forced to pay a pollution charge,what is the effect on the supply and demand curves for the product?

• A) The quantity supplied along the firm's supply curve increases.
• B) The firm's demand curve shifts leftward.
• C) The firm's supply curve shifts rightward.
• D) The firm's supply curve shifts leftward.
• E) Both the supply curve and the demand curve shift leftward.

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