Figure 3. The graph depicts the market for fertilizer. Price 500 450- 400 350- 300 250 200- g 150- 100 50 This market would benefit from a 50 100 150 200 250 300 350 400 450 500 Quantity a. subsidy on fertilizer equal to $100. b. tax on fertilizer equal to $100. Social Cost c. tax on fertilizer equal to $50. d. subsidy on fertilizer equal to $50. Supply (Private Costs) Demand

Figure 3. The graph depicts the market for fertilizer. Price 500 450- 400 350- 300 250 200- g 150- 100 50 This market would benefit from a 50 100 150 200 250 300 350 400 450 500 Quantity a. subsidy on fertilizer equal to $100. b. tax on fertilizer equal to $100. Social Cost c. tax on fertilizer equal to $50. d. subsidy on fertilizer equal to $50. Supply (Private Costs) Demand

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 1PA

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