Suppose the government adopts a policy that forces pesticide producers to bear the social costs of groundwater oontamination associated with the use of their product. This policy will V the price of Orange Market pesticides. 1.00 Since orange growers regard the pesticide as a key input in the production of oranges, the market for oranges will obviously be affected. 0.90 0.80- Using the line drawing tool, show how the policy on pesticides impacts the market for oranges. Properly label the line. 0.70- 0 60- Carefully follow the instructions above, and only draw the required objects. 0.50 The government policy on pesticides causes the market price of oranges to 040 0.30 The govemment policy on pesticides causes the equilibrium quantity of oranges to 020 0.10 0.00- i910 Quantity (Millions)

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