-Refer to the Above Figure

Multiple Choice

-Refer to the above figure. The market equilibrium quantity is Q₁. Point Q₂ represents the optimal amount of production. The government can achieve the optimal outcome by

A) setting the price at P₃.
B) providing a per-unit subsidy to consumers equal to P₃ - P₁.
C) providing a per-unit subsidy to consumers equal to P₂ - P₁.
D) establishing a tax equal to P₂ - P₁ per unit of the good sold.