Use the Following to Answer Question

Multiple Choice

Use the following to answer question:
Figure: Correcting for Market Failure
-(Figure: Correcting for Market Failure) Use Figure: Correcting for Market Failure.There is an external cost in the market illustrated in the figure,and the two upward-sloping lines reflect private and social marginal costs.If the government intervenes to correct for the external cost,the new _____ will now reflect _____ costs.

A) supply curve S₁;both private and external
B) supply curve S₂;private but not external
C) supply curve S₂;both private and external
D) demand curve (not shown) ;external but not private