AM Suppose the oil refinery firm determines its equilibrium price per barrel after refining the crude oil shown in above Figure 1. Assuming that this combination of equilibrium price (P*) and quantity of refined oil (q") is causing pollution in the air called a negative externality. In order to internalize this negative externality, if the US government imposes pollution tax on this firm, which of the statements below would the correct impact of imposition of pollution tax? Demand curve would shift to right with increase in equilibrium price and increase in quantity of oil refined demand curve would shift to the left with decrease in equilibrium price of refined oil and decrease in equilibrium quantity. Supply curve would shift to the left with increase in equilibrium price of refined oil and decrease in equilibrium quantity. Supply curve would shift to right with increase in equilibrium price and decrease in quantity of oil refined