Suppose that instead of implementing the policy described in the article, the government introduces a per-unit tax of size P3-P1 on buyers. Price of high emissions vehicles True P3 O False 0 B D Qu Social Value S D True or false: The alternative policy fully internalises the externality. Quantity of high emissions Vehicles

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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the policy mentioned in the article was a carbon tax placed on high-emission vehicles. does the per-unit tax size of P3-P1 on buyers, internalise the externality?
Suppose that instead of implementing the policy described in the article, the government introduces
a per-unit tax of size P3-P1 on buyers.
Price of
high emissions
vehicles
O True
a.~
O False
----
0
A
B
Q₂
C
D
Quantity of high
emissions Vehicles
True or false: The alternative policy fully internalises the externality.
S
Social
Value
Transcribed Image Text:Suppose that instead of implementing the policy described in the article, the government introduces a per-unit tax of size P3-P1 on buyers. Price of high emissions vehicles O True a.~ O False ---- 0 A B Q₂ C D Quantity of high emissions Vehicles True or false: The alternative policy fully internalises the externality. S Social Value
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