The diagram below gives information about demand and supply for robots in Econtand.14121110$ 96.0 12 345 67 8 9 10Suppose that each robot in Econland creates a S6 positive externality because of how they make neighborhoods safer. If thegovernment imposes the Pigouvian policy (the tax etotal surplus as a result of this policy?subsidy that will maximize total surplus), what would be the change inO $9O +$9O $18O no change in total surplus from this policyO +$1832109876543210

Externality refers to the situation when the economic activity of one person affects the other…

Suppose that each robot in Econland creates a $6 positive externality because of how they make neighborhoods safer. If th government imposes the Pigouvian policy (the tax or subsidy that will maximize total surplus), what would be the change i total surplus as a result of this policy? O $9 O +$9 O $18 O no change in total surplus from this policy +$18

Suppose that each robot in Econland creates a $6 positive externality because of how they make neighborhoods safer. If th government imposes the Pigouvian policy (the tax or subsidy that will maximize total surplus), what would be the change i total surplus as a result of this policy? O $9 O +$9 O $18 O no change in total surplus from this policy +$18

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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