Figure 10-8 20 Price 18+ 16+ 14+ 12 10- 2 6+ 4 O Demand 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Supply Social Value 4

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Figure 10 8 20 Price 18 16 14 12 10 2 6 4 O Demand 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Supply Social Value 4 1 (22.83 KiB) Viewed 12 times

Figure 10-8 20 Price 18+ 16+ 14+ 12 10- 2 6+ 4 O Demand 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Supply Social Value 4 Quantity Refer to Figure 10-8. If the government wanted to internalize the externality in this market to achieve the socially- optimal level of output, what should the government do? O a Impose a tax of $2 per unit. O b. Impose a tax of $4 per unit. O Give a subsidy of $2 per unit. O d. Give a subsidy of $4 per unit.