The government aims to control the consumption of a demerit good so that overall welfare in society rises. In which case will society’s net welfare rise?
- AThe fall in the marginal social benefit is greater than the fall in the marginal social cost.
- BThe fall in the marginal external cost is greater than the fall in the marginal external benefit.
- CThe fall in the total social benefit is greater than the fall in the total social cost.
- DThe fall in the total social cost is greater than the fall in the total social benefit.