After new research shows potentially damaging health effects of Good X, government leaders impose a new tax that firms must pay for each unit of the good produced. How will rational firms that produce the good likely respond? A. by raising the price of the good
B. by lowering the price of the good
C. by decreasing production of the good
D. by increasing production of the good

The third program provides families with $50 in food stamps each week, redeemable for both perishable and nonperishable food. the fourth policy instead provides a family with a box of nonperishable foods each week, worth $50. use two graphs to illustrate that a family may be indifferent between the two programs, but will never prefer the $50 box of nonperishable foods over the $50 in food stamps. state your answer and use a consumer choice model for perishable food and nonperishable food to graphically justify your choice.