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above supply and demand graph. In the graph, line S is the current supply of this product, while line S1 is the optimal supply from
above supply and demand graph. In the graph, line S is the current supply of this product, while line S1 is the optimal supply from the society's perspective. One solution to this externality problem is to: Question 3 options: a) Tax consumers by the amount EF b) Tax producers by the amount DE c) Give consumers a subsidy of the amount FG d) Give producers a subsidy of the amount AB
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