6. To overcome the distorting influence on price of externalities (such as those created in hogprocessing plants),
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6. To overcome the distorting influence on price of externalities (such as those created in hogprocessing plants),
a. government can levy a tax to cover externality costs, which will shift the supply curve to the left.
b. government can levy a tax to cover externality costs, which will shift the supply curve to the right.
c. government can levy a tax to cover externality costs, which will shift the demand curve to the left.
d. government can levy a tax to cover externality costs, which will shift the demand curve to the right.
e. pork producers can raise price to cover externality costs, which will shift the supply curve to the right.
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