Multiple Choice
-Refer to the above figure. The market equilibrium quantity is . Point
represents the optimal amount of production. The government can achieve the optimal outcome by
A) setting the price at .
B) providing a per-unit subsidy to consumers equal to -
.
C) providing a per-unit subsidy to consumers equal to -
.
D) establishing a tax equal to -
per unit of the good sold.
Correct Answer:

Verified
Correct Answer:
Verified
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