Refer to the figure below, taking the cost of externality into account, which of the following is true? P S1 = Marginal Social Cost So = Marginal Private Cost P1 Cost of externality Po D = Marginal Social Benefit Q1 Qo O It causes the supply curve to shift to the left. O It increases the equilibrium price and quantity demanded. O It increases the equilibrium price and decreases the quantity demanded. O It causes the supply curve to shift to the right