Dry cleaning of clothing produces air pollutants. Therefore, in the market for dry cleaning services, the equilibrium price
A. and output are too low to be optimal.
B. and output are too high to be optimal.
C. is too low to be optimal, and equilibrium quantity is too high.
D. is too high to be optimal, and equilibrium quantity is too low.
Answer:C
Dry cleaning of clothing produces air pollutants. Therefore, in the market for dry cleaning services, the equilibrium price
A. and output are too low to be optimal. B. and output are too high to be optimal. C. is too low to be optimal, and equilibrium quantity is too high. D. is too high to be optimal, and equilibrium quantity is too low.