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Dry cleaners use chemicals to clean clothes that have external costs. If the external cost is $2 per garment cleaned and the government levies a
Dry cleaners use chemicals to clean clothes that have external costs. If the external cost is $2 per garment cleaned and the government levies a corrective tax of $1 per garment. With this new tax: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a the equilibrium price will be below the private cost of dry cleaning. b the equilibrium price will be below the social benefit or value. c the equilibrium price will be above the social cost or value. d too many garments will be cleaned
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