In a small town, a paper mill produces water pollution.

If the government does not intervene, the equilibrium price of paper will be and the equilibrium quantity of paper will be

A$.$ greater than the socially optimal price, greater than the socially optimal quantity

B$.$ greater than the socially optimal price, less than the socially optimal quantity

C$.$ equal to the socially optimal price, equal to the socially optimal quantity

D$.$ less than the socially optimal price, greater than the socially optimal quantity

E$.$ less than the socially optimal price, less than the socially optimal quantity

The government could best correct this externality by