Suppose the demand for cookies is given by P equals 100 minus Q , and the supply is given by P equals Q . Suppose that the smell given off from the cookie plant imposes a social benefit of b equals 8 on society. How could the government correct for this externality? The government could subsidize consumption by $8 a unit. The government could tax production by $8 a unit. The government could subsidize production by $8 a unit. The government could tax consumption by $8 a unit