When an industry's production of a good causes harm, Negative Externality or External Cost to society, which of the following statement/s do you agree with? Marks will be deducted for wrong answes. Select one: a. Government has an important role to play and that is to encourage and increase the production of that good. Such action by the Government will shift the Supply curve to the RIGHT. As a result, more of that harmful good will be produced and consumed and more resources are allocated to produce that good. b. Government should NOT be involved but let the market determine its own equilibrium price and quantity. Government involvement will only result in a shortage or surplus situation. There will be illegal activity. There will be discrimination by sellers. c. Government has an important role to play and that is to discourage and reduce the production of that good. Such action by the Government will shift the Supply curve to the LEFT. As a result, less of that harmful good will be produced and consumed and, fewer resources are allocated to produce that good