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Title: A firm that produces chemical solvents creates some air pollution because of the emissions from its ... Post by: lbelcher on Mar 4, 2019 A firm that produces chemical solvents creates some air pollution because of the emissions from its manufacturing facilities. A tax is imposed on the firm, equal to the costs of environmental damage caused by a unit of the emissions. What is the result?
• Consumers of the chemical solvents will be willing to pay the full amount of the tax, and so the quantity produced will be unaffected. • Demand for the chemical solvents will decrease. • Demand for the chemical solvents will increase. • The quantity of chemical solvents produced now will be the efficient amount. Title: A firm that produces chemical solvents creates some air pollution because of the emissions from its ... Post by: coltonf1 on Mar 4, 2019 Content hidden
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