Multiple Choice
-Refer to the above graph to answer this question.If this product were both taxed and subsidized by an amount equal to the external costs and benefits,what would be the equilibrium price and quantity?
A) $30 and 500.
B) $40 and 800.
C) $50 and 700.
D) $50 and 900.
E) $60 and 800.
Correct Answer:
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