Good X is a widely bought product whose consumption generates a negative externality. The government wants consumption of good X to fall substantially. In which situation is the government most likely to achieve its objective?
- Aprice elasticity of demand for good X more than 1; government policy subsidy
- Bprice elasticity of demand for good X less than 1; government policy subsidy
- Cprice elasticity of demand for good X more than 1; government policy indirect tax
- Dprice elasticity of demand for good X less than 1; government policy indirect tax