-According to the Above Figure, If Steel Mills Are Charged

Multiple Choice

-According to the above figure, if steel mills are charged an effluent fee in order to bear the cost of pollution, what happens to the equilibrium price and equilibrium quantity?

A) They are unchanged.
B) They change from P₁ and Q₁ to P₂ and Q₂.
C) They change from P₂ and Q₂ to P₁ and Q₁.
D) The equilibrium price increases from P₁ and P₂, but the equilibrium quantity is unchanged.