Refer to the data below. Over which price range is the demand unit-elastic?

In the economic way of thinking, what do entrepreneur's and bureaucrats have in common?

A) They each advance projects solely in the public interest. B) They each advance projects only if the expected marginal benefits exceed the expected marginal costs. C) They each advance projects only if the expected marginal benefits are less than the expected marginal costs. D) They each advance projects only if they impose no negative externalities.

Refer to the supply and demand graph below. In the graph, line S is the current supply of this product, while line S1 is the optimal supply from the society's perspective. One solution to this externality problem is to:

A. Give consumers a subsidy of the amount FG per unit
B. Give producers a subsidy of the amount AB per unit
C. Tax producers by the amount DE per unit
D. Tax consumers by the amount EF per unit