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

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20 18 16 14 12 10 1 Supply Demand Social Value 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Quantity Refer To Figure 1 (18.58 KiB) Viewed 11 times

20 18- 16+ 14- 12 10 1 Supply Demand Social Value +4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 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. Od Give a subsidy of $4 per unit.