Answer all parts of the question with the following options

Thinking about vehicle emissions, vehicle prices, and demand observed in the United State, assume we can loosely represent the demand for two Ford products in the following graphs: where the equilibrium price for the F-150 is twice the price of the Focus, and the pollution created by the F-150 is twice the amount created by the Focus. (Note: $ and Q in thousands, therefore 900=900,000 and $40=$40,000). What is the optimal Pigouvian/corrective tax to charge in the Ford Focus market? Based on the information above, the average external cost of vehicle emissions is approximately $9,000 (when including sales volume). What do we know to be true about the Ford F150 market if the US government institutes a tax equal to $9,000 ? Based on the information above, the average external cost of vehicle emissions is approximately $9,000 (when including sales volume). What do we know to be true about the Ford Focus market if the US government institutes a tax equal to $9,000 ? What is the optimal Pigouvian/corrective tax to charge in the Ford F-150 market? Choose... $2,500 $10,000 The tax is the correct size. It reduces the level of production to the socially efficient level. The tax is too small. It doesn't get us to the socially efficient level. The tax is too large. It reduces the level of production to a point below the socially efficient level. $9,000 The government should subsidize this market, rather than impose a tax. $4,500 $5,000