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What value of the tax should be $? Homework: Ch. 5.2 - 5.3: Externalities and Policy Score: 1 of 2 pts 6 of 11 (6

What value of the tax should be $?

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Homework: Ch. 5.2 - 5.3: Externalities and Policy Score: 1 of 2 pts 6 of 11 (6 complete) HW Score: 46.15%, 12 of 26 End of Chapter 3. 12 Question Help Companies that produce toilet paper bleach the paper to make it white. Some paper plants discharge the bleach into rivers and lakes, causing substantial environmental damage. S2 = marginal social cost S1 = O Suppose the graph to the right illustrates the situation in the toilet paper market. marginal By imposing a tax on toilet paper, the government will cause private cost O A. consumers to internalize the externality causing the equilibrium quantity of toilet paper consumed to increase. O B. consumers to internalize the externality causing the equilibrium price of toilet paper consumed to decrease. $100 C. consumers to internalize the externality causing the equilibrium quantity of toilet paper consumed to decrease. O D. consumers to internalize the externality causing the equilibrium price of Price per ton of toiler paper (dollars toilet paper consumed to stay the same. The value of the tax should be $ 150 per tousand ton of toilet paper. 350 :450 Quantity (1,000 tons of toilet paper produced per week) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Final Check

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