Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Correcting for Market Failure
-(Figure: Correcting for Market Failure) There is an external cost in the market illustrated in the figure Correcting for Market Failure. If the government forces the private-sector firms to face the external cost:

A) the supply curve shifts to the right, from S₂ to S₁.
B) the supply curve shifts to the left, from S₁ to S₂.
C) the supply curve is unaffected.
D) price per unit decreases.