-In the Figure Above, S Is the Supply Curve and D

Multiple Choice

-In the figure above, S is the supply curve and D is the demand curve in the unregulated, competitive market for gasoline in Motorland. The external cost of gasoline is constant at $1.50 per gallon. The unregulated, competitive market for gasoline in Motorland

A) produces the efficient quantity of gasoline.
B) overproduces by 0.2 million gallons of gasoline a month.
C) underproduces by 0.1 million gallons of gasoline a month.
D) overproduces by 0.1 million gallons of gasoline a month.