1.If a company pollutes while making its product, the market outcome will be inefficient. We can use government policy to regulate this company in order to reduce pollution.

a.If the government imposes stricter pollution regulation on this company, will supply increase or decrease? Decrease

b.Based on your answer to the previous question, what will happen to equilibrium price and quantity? Both will Decrease

c.Why might an economist consider this outcome more efficient than the market equilibrium before the pollution control was in effect?

Need help with Letter Question [C]