The market of deodorant is characterized by the following: QD = 12 - 2P QS = 2P P - $/ounce of deodorant Q - ounces of deodorant Deodorant use benefits not only the user, but bystanders as well

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The market of deodorant is characterized by the following:

QD = 12 - 2P

QS = 2P

P - $/ounce of deodorant

Q - ounces of deodorant

Deodorant use benefits not only the user, but bystanders as well. Economists have estimated that these external benefits amount to $2/ounce.

Professor A advocates a full per ounce subsidy to consumers, reducing their price to zero, on the grounds that the increase in externality benefits more than outweighs the distortion in the private deodorant market.

Professor B, reacting to Professor A's plan, holds that society, on efficiency grounds, is better off with the market outcome (no government intervention) than with the results of Professor A's policy.

The price producers will receive for deodorant will be:

a. $6/oz.

b. $12/oz.

c. $3/oz.

d. $2/oz.