When a corrective tax is created so that it equals the external costs linked to the production of a product, it will the price buyers pay and the market result becomes efficient. A decrease; more B decrease; less C increase; more D increase; less
When a corrective tax is created so that it equals the external costs linked to the production of a product, it will the price buyers pay and the market result becomes efficient. A decrease; more B decrease; less C increase; more D increase; less
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:11.04
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When a corrective tax is created so that it equals
the external costs linked to the production of a
product, it will
and the market result becomes
the price buyers pay
efficient.
A
decrease; more
B
decrease; less
C
increase; more
D
increase; less
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