A fertilizer plant emits a very foul odour during the production process. If the government forces the plant to internalize this negative externality, what would result? The demand curve for fertilizer would shift to the left (up). The supply curve for fertilizer would shift to the left (up). The demand curve for fertilizer would shift to the right (down). The supply curve for fertilizer would shift to the right (down).

A fertilizer plant emits a very foul odour during the production process. If the government forces the plant to internalize this negative externality, what would result? The demand curve for fertilizer would shift to the left (up). The supply curve for fertilizer would shift to the left (up). The demand curve for fertilizer would shift to the right (down). The supply curve for fertilizer would shift to the right (down).

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section10.1: Externalities And Market Inefficiency

Problem 1QQ

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