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The following graph provides a stylised representation of the effects of the policy proposed by the government to correct for the externality (in the graph,

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The following graph provides a stylised representation of the effects of the policy proposed by the government to correct for the externality (in the graph, $2 is the supply curve after the policy is implemented). Price of high emissions vehicles D Social Value Quantity of high emissions vehicles If the policy is implemented, what is the price-quantity combination determined by the market? O P4. Q2 O P2, Q2 O P3, Q3 O P3, Q1The following graph provides a stylised representation of the effects of the policy proposed by the government to correct for the externality (in the graph, $2 is the supply curve after the policy is implemented). Price of high tmissions vehicles 15 D Social Value Quantity of high emissions vehicles If the policy is implemented, what is the price that buyers pay? O P1 O P2 O P3 O P4The following graph provides a stylised representation of the effects of the policy proposed by the government to correct for the externality (in the graph, $2 is the supply curve after the policy is implemented). Price of high emissions vehicles D Social Value Quantity of high emissions vehicles If the policy is implemented, what is the deadweight loss generated by the externality? O A+B+C+D O C+D OC O ZeroThe following graph provides a stylised representation of the effects of the policy proposed by the government to correct for the externality (in the graph, $2 is the supply curve after the policy is implemented). Price of high emissions vehicles Social Value Quantity of high emissions vehicles Given the stylised representation provided in the graph above, which of the following sentences is most accurate about the burden of the policy? O the burden of the policy falls only on buyers of high-emission cars O the burden of the policy falls only on sellers of high-emission cars O the burden of the policy is split between both the buyers and sellers of high-emission cars O the burden of the policy is zero because the externality is fully internalised

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