The Following Questions Refer to the Graph Below

Multiple Choice

The Following Questions Refer to the graph below.
-A tax of T₁ per unit on polluted discharge will induce the firm to

A) Clean its discharge up to q₁ units per day rather than pay the tax
B) Pay the tax rather than clean discharge up to q₁ units per day
C) Clean its discharge exceeding q₁ units per day rather than pay the tax
D) Pay the tax on all units
E) (a) and (d)