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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Definitions:

Significant Main Effect

An outcome in statistical analysis indicating that the independent variable has a statistically meaningful impact on the dependent variable.

Variable

Property or characteristic of an object, event, or person that can take on different values.

Marginal Means

Means for each level of an independent variable, averaging over the levels of any other independent variables.

Significant Main Effect

A significant main effect is an observed effect in ANOVA that shows a meaningful difference in the dependent variable due to one independent variable, beyond chance.