#6. If government regulation forces firms in an industry to internalize a negative externality, then we can expect the equilibrium price of the good to and the equilibrium quantity to a. increase; increase b. increase; decrease c. decrease; decrease d. decrease; increase e. increase; remain unchanged

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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**Question #6:** If government regulation forces firms in an industry to internalize a negative externality, then we can expect the equilibrium price of the good to _______ and the equilibrium quantity to _______.

a. increase; increase  
b. increase; decrease  
c. decrease; decrease  
d. decrease; increase  
e. increase; remain unchanged
Transcribed Image Text:**Question #6:** If government regulation forces firms in an industry to internalize a negative externality, then we can expect the equilibrium price of the good to _______ and the equilibrium quantity to _______. a. increase; increase b. increase; decrease c. decrease; decrease d. decrease; increase e. increase; remain unchanged
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