-According to the Above Figure, If Steel Mills Are Charged

question 186

Multiple Choice

-According to the above figure, if steel mills are charged an effluent fee in order to bear the cost of pollution, what happens to the equilibrium price and equilibrium quantity?

• A) They are unchanged.
• B) They change from P1 and Q1 to P2 and Q2.
• C) They change from P2 and Q2 to P1 and Q1.
• D) The equilibrium price increases from P1 and P2, but the equilibrium quantity is unchanged.

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Definitions:

Journal Entries

The basic method used in accounting to record transactions, involving debits and credits to appropriate accounts.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company's balance sheet.

Bank Statement

A document issued by a bank detailing the transactions in an account over a specific period, showing deposits, withdrawals, and balances.

Cash Receipts

The total amount of cash collected by a business within a specific period, including revenues from sales, loan proceeds, interest income, and other sources.