1. A company decides to eliminate the pollution it was causing. The result was a "socially efficient level of production, but the cost of production increased. What happens to the equilibrium price and quantity demanded? 1. The price decreases and the quantity demanded decreases 2. The price increases and the quantity demanded increases 3. The price increases and the quantity demanded decreases 4. The price decreases and the quantity demanded decreases
1. A company decides to eliminate the pollution it was causing. The result was a "socially efficient level of production, but the cost of production increased. What happens to the equilibrium price and quantity demanded? 1. The price decreases and the quantity demanded decreases 2. The price increases and the quantity demanded increases 3. The price increases and the quantity demanded decreases 4. The price decreases and the quantity demanded decreases
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 7PA
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