PRICE (Dollars per unit) 36 30 24 18 2 6 Social Cost Supply Demand 100 200 300 400 500 600 QUANTITY (Units of plastic) b. impose a tax of $3 per unit on plastics. O c. impose a tax of $12 per unit on plastics. d. offer a subsidy of $9 per unit on plastics. Refer to Figure 10-6. In order to reach the social optimum, the government should a. impose a tax of $9 per unit on plastics.

PRICE (Dollars per unit) 36 30 24 18 2 6 Social Cost Supply Demand 100 200 300 400 500 600 QUANTITY (Units of plastic) b. impose a tax of $3 per unit on plastics. O c. impose a tax of $12 per unit on plastics. d. offer a subsidy of $9 per unit on plastics. Refer to Figure 10-6. In order to reach the social optimum, the government should a. impose a tax of $9 per unit on plastics.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section: Chapter Questions

Problem 4CQQ

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