Refers to the graph below. 60. If the market for this good was in equilibrium at $$\(Q 2\)$$ but the socially optimal output was $$\(Q 1\)$$, the government could best remedy this of resources by legislating a on of the good.
A.
underallocation, per-unit tax, consumers
B.
overallocation, per-unit subsidy, consumers
C.
underallocation, per-unit tax, producers
D.
overallocation, per-unit subsidy, producers
E.
overallocation, per-unit tax, producers
Exam No： AP Micro Practice Test 4 Year：2024 Question No：60
Answer:
E
Knowledge points:
2.8 The Effects of Government intervention in Markets
6.1 Socially Efficient and Inefficient Market Outcomes
6.2 Externalities
Solution:
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