If a Polluting Producer Is Forced to Pay a Pollution

Multiple Choice

If a polluting producer is forced to pay a pollution charge,what is the effect on the supply and demand curves for the product?

A) The quantity supplied along the firm's supply curve increases.
B) The firm's demand curve shifts leftward.
C) The firm's supply curve shifts rightward.
D) The firm's supply curve shifts leftward.
E) Both the supply curve and the demand curve shift leftward.