Suppose Johnson's Rubber Factory belches black smoke into the air over the city of Bellowsville. If the city of Bellowsville attempts to internalize the external costs associated with the production of rubber with a pollution tax, then we expect:
A. a leftward shift of Johnson's supply curve.
B. a rightward shift of Johnson's supply curve.
C. no change in Johnson's supply curve.
D. a leftward shift in the demand curve for Johnson's rubber.
Answer: A
Economics
You might also like to view...
If the demand for beans tends to decline as incomes rise, everything else held constant, beans are _____
a. luxury goods b. normal goods c. price sensitive d. not price sensitive e. inferior goods
Economics
Paul Samuelson is immensely famous among economists for having established the supply-side school of economics
Indicate whether the statement is true or false
Economics