The Figure Given Below Shows the Demand and Supply Curves

question 41

Multiple Choice

The figure given below shows the demand and supply curves of automobiles.Figure 13.3
In the figure,
D: Demand curve of automobiles
S: Supply of automobiles prior to the tax
S+t: Supply of automobiles after the tax

-The Clean Air Act of 1972 required some companies to install the "best available" pollution control technologies. This is an example of:

• A)the government using a subsidy to encourage a negative externality.
• B)the government using the command approach to discourage a negative externality.
• C)the government using the command approach to encourage a positive externality.
• D)a marketable pollution permit.
• E)a pollution tax.

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