A tax may be used as a corrective device in the case of a negative externality because it will marginal private costs and supply.

b. increase; increase

Explanation:

As if there is taxes so it increased the marginal private cost and reduce the supply. If the tax is imposed so it rise the production cost i.e. the raw material prices are more that ultimately increased the final cost

So here the marginal private cost would be increased

In the case when there is a rise in the cost so the producer would have lower money so that he or she is able to decreased the suppply on the other hand the demand of the consumer would be decreased due to rise in prices.

So, the supply would also be increased

Hence, the correct option is b.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi