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Question 21 2.5 pts If policymakers use a pollution tax to control pollution, the tax per unit of pollution should be set O at a

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Question 21 2.5 pts If policymakers use a pollution tax to control pollution, the tax per unit of pollution should be set O at a level low enough so that producers can pass along a portion of the additional cost onto consumers without significantly reducing demand for the product. O equal to the marginal private cost of production at the economically efficient level of pollution. O equal to the marginal external cost at the economically efficient level of pollution. O equal to the amount of the deadweight loss created in the absence of a pollution tax. D Question 22 2.5 pts Economists have estimated that the cross-price elasticity of demand between beer and spirits is -0.50, the income elasticity for spirits is 1.21 and the income elasticity for wine is 5.03. These elasticities mean that beer and spirits are and spirits and wine are O complements; substitutes O normal goods; luxuries O complements; luxuries O substitutes; luxuries

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