-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.