Figure 10-17 -Refer to Figure 10-17. How Large Would a Corrective Tax

question 9

Multiple Choice

Figure 10-17
-Refer to Figure 10-17. How large would a corrective tax need to be to move this market from the equilibrium outcome to the socially-optimal outcome?

• A)An amount equal to P' minus P.
• B)An amount equal to P'.
• C)An amount equal to P.
• D)An amount equal to the external cost.