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A Paper Plant Produces Water Pollution During the Production Process

Question 335

Multiple Choice

A paper plant produces water pollution during the production process. If the government forces the plant to internalize the negative externality, then the


A) supply curve for paper would shift to the right.
B) supply curve for paper would shift to the left.
C) demand curve for paper would shift to the right.
D) demand curve for paper would shift to the left.

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