Who loses surplus when consumers in a market are forced to pay a Pigouvian tax for a negative externality?
A) Consumers
B) Producers
C) Others affected by the externality
D) Both producers and consumers lose surplus when negative externalities are internalized.

Question

Quizplus · Accepted Answer

Both producers and consumers lose surplus when negative externalities are internalized.

Who Loses Surplus When Consumers in a Market Are Forced