Figure: Correcting for Market Failure (Figure: Correcting for Market

Multiple Choice

Figure: Correcting for Market Failure (Figure: Correcting for Market Failure) Assume that there is an external cost involved in the
Market illustrated in the figure Correcting for Market Failure.If the government intervenes to correct for the external cost, the new ________ will now reflect _.

A) supply curve S1; private and external costs
B) supply curve S2; private but not external costs
C) supply curve S2; private and external costs
D) demand curve (not shown) ; external but not private costs