If the government wishes to correct the existence of positive externality, it could
A) grant subsidies to consumers to stimulate demand.
B) impose a tax on the producers to stimulate supply.
C) impose taxes on consumers to stimulate demand.
D) grant subsidies to producers to reduce supply.
A
Economics
You might also like to view...
The government's authority to take private property for public use is referred to in economics as a land grab
Indicate whether the statement is true or false
Economics
A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will
A) rise. B) fall. C) remain the same. D) rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves.
Economics