The government intends to control the consumption of a demerit good so that society’s net welfare rises. In which situation 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 social cost is greater than the fall in the marginal social 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.