Suppose Johnson's Rubber Factory belches black smoke into the air over the city of Bellowsville. If the city of Bellowsville attempts to internalize the external costs associated with the production of rubber with a pollution tax, then we expect:
A. at each price, a smaller quantity of rubber will be supplied by Johnson's Rubber Factory.
B. at each price, a larger quantity of rubber will be supplied Johnson's Rubber Factory.
C. Johnson's Rubber Factory will not change the amount of rubber supplied at each price.
D. Johnson's production costs not to change.
Answer: A
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