If the product depicted is only purchased by individuals and those individuals have the private demand curve depicted by PB and if the cost of the product is fixed at PA which of the following statements is true if the product has negative externalities given by EB-?

A) Private individuals should purchase quantity XP and the government should buy back the amount represented by EB-.

B) Society would be better off if private individuals purchased a total quantity of XS- but private individuals will actually purchase the quantity XP.

C) Private individuals should purchase quantity XP and the government will purchase the amount (XS+ XS-).

D) The optimal quantity of the good or service to be produced is where the SB- curve intersects the X-axis.