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Suppose that repeated application of a pesticide used on orange trees causes harmful contamination of groundwater. The pesticide is applied annually in virtually all of

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Suppose that repeated application of a pesticide used on orange trees causes harmful contamination of groundwater. The pesticide is applied annually in virtually all of the orange groves throughout the world. Most orange growers regard the pesticide as a key input in their production of oranges. Supply The diagram to the right depicts the unregulated market for oranges. 17 Using the line drawing tool, draw the supply curve that takes into account both the private cost and the social cost of orange production. Properly label your line. Carefully follow the instructions above, and only draw the required objects. Price Which of the following government policies might be effective in achieving the amount of orange production that fully reflects all social costs? O A. A tax on growers commensurate with the cost to third parties. B. Government financing or production of oranges. Demand O C. Regulations that limit the use of pesticides. O D. Both A and C are viable policies. Quantity O E. Both A and B are viable policies

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