A Government Policy That Charges Coal Producers a Fee Per

A government policy that charges coal producers a fee per ton of coal produced (an "effluent charge") , where the fee is determined by the amount of pollutants discharged into the air or water, will lead to a(n) :

A) decrease in the market equilibrium quantity of coal produced.
B) decrease in the market equilibrium price of coal.
C) increase in the market equilibrium price of coal.
D) a and c are correct.

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