Which of the Following Statements Is TRUE? I

Multiple Choice

Which of the following statements is TRUE? I. Taxes may reduce consumption by exactly the same amount as government regulations. II. Taxes typically cost more than government regulations because taxes raise prices whereas regulations simply limit quantity. III. Command-and-control policies effectively reduce consumption; but may not be the lowest cost method for doing so.

A) I and II only
B) I and III only
C) II only
D) II and III only