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-Refer to the Above Figure Q1\mathrm { Q } _ { 1 }

Question 165

Multiple Choice

   -Refer to the above figure.The market equilibrium quantity is  \mathrm { Q } _ { 1 }  .Point  \mathrm { Q } _ { 2 }  Represents the optimal amount of production.The government can achieve the optimal outcome by A) setting the price at  \mathrm { P } _ { 3 }  . B) providing a per-unit subsidy to consumers equal to  \mathrm { P } _ { 3 }  -  P _ { 1 }  . C) providing a per-unit subsidy to consumers equal to  P _ { 2 }  -  P _ { 1 }  . D) establishing a tax equal to  P _ { 2 }  -  P _ { 1 }  per unit of the good sold.
-Refer to the above figure.The market equilibrium quantity is Q1\mathrm { Q } _ { 1 } .Point Q2\mathrm { Q } _ { 2 }
Represents the optimal amount of production.The government can achieve the optimal outcome by


A) setting the price at P3\mathrm { P } _ { 3 } .
B) providing a per-unit subsidy to consumers equal to P3\mathrm { P } _ { 3 } -
P1P _ { 1 } .
C) providing a per-unit subsidy to consumers equal to P2P _ { 2 } -
P1P _ { 1 } .
D) establishing a tax equal to P2P _ { 2 } -
P1P _ { 1 } per unit of the good sold.

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