-If the Government Taxes Producers That Create Pollution, the Government's

Multiple Choice

-If the government taxes producers that create pollution, the government's policy

A) forbids the firms from passing along higher costs.
B) results in less production because the producers' costs have risen.
C) eliminates pollution entirely by shifting the supply curve leftward.
D) allows the firms to pass along higher costs but doesn't cut pollution.
E) allows the producers to pollute more by increasing their costs.