PRICE O-Icon Key 20 18 16 14 10 Figure 10-3 Social Value Supply Regand 2468 10 12 14 16 18 20 QUANTITY Refer to Figure 10-3. If the government wanted to tax or subsidize this good to achieve the socially optimal level of output, it would O a introduce a subsidy of $2 per unit O b. impose a tax of $2 per unit O cimpose a tax of 14 per unit. O d introduce a subsidy of 54 per unit

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter16: Externalities, The Environment, And Natural Resources
Section: Chapter Questions
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PRICE
- Icon Key
20
18
16
14
10
Figure 10-3
Social Value
Supply
Regand
248 10 12 14 16 18 20
QUANTITY
Refer to Figure 10-3. If the government wanted to tax or subsidize this good to achieve the socially optimal level of output, it would
O a. introduce a subsidy of $2 per unit
O b. impose a tax of $2 per unit
O cimpose a tax of 14 per unit.
Od introduce a subsidy of 54 per unit.
Transcribed Image Text:PRICE - Icon Key 20 18 16 14 10 Figure 10-3 Social Value Supply Regand 248 10 12 14 16 18 20 QUANTITY Refer to Figure 10-3. If the government wanted to tax or subsidize this good to achieve the socially optimal level of output, it would O a. introduce a subsidy of $2 per unit O b. impose a tax of $2 per unit O cimpose a tax of 14 per unit. Od introduce a subsidy of 54 per unit.
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