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Help Save Refer to the provided supply and demand graph for a product. In the greph, line Sis the current supply of this product, while line Sh is the optimal supply from the societys perspective < Prey 16 of 20 Next >
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Answer:

One solution to this externality problem is to:

A. Give consumers a subsidy of the amount FG per unit

The problem can be solved by giving subsidy because if tax will be charged from the producers they can shift the burden of the tax by increasing prices

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