36 Social Cost 30 30 24 24 18 PRICE (Dollars per unit) 2 6 Supply Demand H 100 200 300 400 500 600 QUANTITY (Units of plastic) Refer to Figure 10-6. In order to reach the social optimum, the government could O impose a tax of $3 per unit on plastics. impose a tax of $9 per unit on plastics. O impose a tax of $12 per unit on plastics. Ooffer a subsidy of $9 per unit on plastics.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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36
Social Cost
30
30
24
24
18
PRICE (Dollars per unit)
2
6
Supply
Demand
H
100
200 300
400
500
600
QUANTITY (Units of plastic)
Refer to Figure 10-6. In order to reach the social optimum, the government could
O impose a tax of $3 per unit on plastics.
impose a tax of $9 per unit on plastics.
O impose a tax of $12 per unit on plastics.
Ooffer a subsidy of $9 per unit on plastics.
Transcribed Image Text:36 Social Cost 30 30 24 24 18 PRICE (Dollars per unit) 2 6 Supply Demand H 100 200 300 400 500 600 QUANTITY (Units of plastic) Refer to Figure 10-6. In order to reach the social optimum, the government could O impose a tax of $3 per unit on plastics. impose a tax of $9 per unit on plastics. O impose a tax of $12 per unit on plastics. Ooffer a subsidy of $9 per unit on plastics.
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