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Answer to Question #156940 in Economics of Enterprise for hello 1

Question #156940
  1. Explain how a carbon tax will affect the equilibrium market quantity of fossil fuels and the socially optimal quantity of fossil fuels.
1
Expert's answer
2021-01-22T09:43:30-0500

Price will increase and demand for fossil fuels will decrease, hence the socially optimal quantity of fossil fuels will not be reached.


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