If the demand faced by a firm is elastic, selling one less unit of output will

A tax on pollution would: a. increase the quantity of pollution generated by giving firms the right to pollute. b. result in firms polluting the same amount as before the imposition of a tax. c. decrease the quantity of pollution generated

d. have an indeterminate impact on pollution levels.

Suppose that a steel factory emits a certain amount of air pollution, which constitutes a negative externality. If the market does not internalize the externality,

a. the supply curve would adequately reflect the marginal social cost of production. b. consumers will be required to pay a higher price for steel than they would have if the externality were internalized. c. the market equilibrium quantity will not be the socially optimal quantity. d. producers will produce less steel than they otherwise would if the externality were internalized.