Final answer:
With new information on health effects of pollution, society would place a higher value on clean air and water, shifting the MB curve rightward, thus increasing the optimal quantity level of pollution control. Therefore the correct answer is B. the optimal quantity level of pollution control would increase.
Step-by-step explanation:
If society decides that it desires cleaner air and water due to new information about the adverse health effects of pollution, one could expect the optimal quantity level of pollution control would increase. This is because the marginal benefit (MB) curve of pollution abatement would shift rightward, representing that society values the benefits of reducing pollution more highly due to the new health information. It is not that the marginal costs (MC) of reducing pollution have changed, but rather that the value society places on clean air and water has increased.
The 'optimal' level of pollution, according to our economic model, is the point where the marginal benefits of reducing it are equal to the marginal costs. In this scenario, with a higher valuation placed on health benefits, that point will now be at a lower level of pollution. This model highlights the dynamic nature of optimal pollution levels as societal values and information change.