Graph 10-4 -Refer to Graph 10-4.The Equivalence of a Pigovian Tax and Pigovian

Multiple Choice

Graph 10-4
-Refer to Graph 10-4.The equivalence of a Pigovian tax and a pollution permit would require that:

A) PB be equivalent to the Pigovian tax
B) QA be equivalent to the amount of pollution allowed by the pollution permit holders
C) the equilibrium price and quantity of pollution be the same in both panel A and panel B
D) all of the above conditions hold