1. A company decides to eliminate the pollution it was causing. The result was a "socially efficient level of production, but the cost of production increased. What happens to the equilibrium price and quantity demanded? 1. The price decreases and the quantity demanded decreases 2. The price increases and the quantity demanded increases 3. The price increases and the quantity demanded decreases 4. The price decreases and the quantity demanded decreases
1. A company decides to eliminate the pollution it was causing. The result was a "socially efficient level of production, but the cost of production increased. What happens to the equilibrium price and quantity demanded? 1. The price decreases and the quantity demanded decreases 2. The price increases and the quantity demanded increases 3. The price increases and the quantity demanded decreases 4. The price decreases and the quantity demanded decreases
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 5PA
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