Exhibit 20-7 -Refer to Exhibit 20-7.If the Government Is Contemplating Imposing a Is

Multiple Choice

Exhibit 20-7

-Refer to Exhibit 20-7.If the government is contemplating imposing a per-unit tax and it wants the tax to have as small a negative effect on consumers as possible,it should choose a good for which the market is depicted on graph

A) (1) .
B) (2) .
C) (3) .
D) (4) .