PRICE (Dollars per unit) 36 30 24 18 2 6 Social Cost Supply Demand 100 200 300 400 500 600 QUANTITY (Units of plastic) b. impose a tax of $3 per unit on plastics. O c. impose a tax of $12 per unit on plastics. d. offer a subsidy of $9 per unit on plastics. Refer to Figure 10-6. In order to reach the social optimum, the government should a. impose a tax of $9 per unit on plastics.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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36
O
30
2
PRICE (Dollars per unit)
18
2
6
100
Social Cost
Supply
Demand
200 300 400 500 600
QUANTITY (Units of plastic)
Refer to Figure 10-6. In order to reach the social optimum, the government
should
a. impose a tax of $9 per unit on plastics.
b. impose a tax of $3 per unit on plastics.
C. impose a tax of $12 per unit on plastics.
d. offer a subsidy of $9 per unit on plastics.
Transcribed Image Text:36 O 30 2 PRICE (Dollars per unit) 18 2 6 100 Social Cost Supply Demand 200 300 400 500 600 QUANTITY (Units of plastic) Refer to Figure 10-6. In order to reach the social optimum, the government should a. impose a tax of $9 per unit on plastics. b. impose a tax of $3 per unit on plastics. C. impose a tax of $12 per unit on plastics. d. offer a subsidy of $9 per unit on plastics.
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