7135/2 Economics Jun 2016 Quiz | AQA AS Level MCQ
Many goods are sold in plastic packaging that has harmful effects on the environment. In Figure 3, D$_1$ and S$_1$ are the free market demand for and supply of plastic packaged goods. S$_2$ would be the supply if firms took account of the cost to the environment of plastic packaging.
The government decides to implement a policy that would result in production moving from the free market level at Q$_1$ to the social…