The Following Questions Refer to the graph below. -Suppose the current tax is T₁ and the government wishes to allow less pollution.It should A)Raise the tax above T₁ B)Lower the tax below T₁ C)Shift the MPC curve to the left D)Shift the MPC curve to the right E)Do none of the above

Question

Quizplus · Accepted Answer

Raising the tax on pollution gives firms a greater incentive to reduce emissions, thereby leading to less pollution.

The Following Questions Refer to the Graph Below