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In order to correct for the externality shown, the government should impose a per-unit... answer choices: A) price control of Pe B) tax equal to

In order to correct for the externality shown, the government should impose a per-unit... answer choices: A) price control of Pe B) tax equal to P^c - P^p C) tax equal to P^c - P^e D) subsidy equal to P^c - P^e E) subsidy equal to P^c - P^p

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MSC Price (S MPC PAC Phe PAP MSB Q' Quantity In order to correct for the externality shown, a gover In order to correct for the externality shown, a government should impose a per unit price control of pl b Fax Erfull 48 pot Ppp 2 tax equal to pe = pt e subsidy equal to BE = p5 e subsidy equal to PC - pp

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