Suppose That Government Officials Have Set an Emissions Tax to Reduce

Multiple Choice

Suppose that government officials have set an emissions tax to reduce pollution.Assume that the optimal tax would be $1,500,but government officials have set the tax at $500.At the equilibrium with the $500 tax:

A) there will be too much pollution.
B) the marginal social cost of pollution will be less than $500.
C) the marginal social benefit of pollution will be less than $500.
D) the marginal social benefit of pollution will be more than $500.