Steve and Don are neighbours who work at the same firm and hold the same title.Steve finds that when Don's consumption rises,he feels worse off.Don feels the same way towards Steve's consumption.
-Refer to the information above.For both Steve and Don,
A) their own consumption is a positional externality.
B) consumption in general is a positional externality.
C) consumption in general has external benefits.
D) each other's consumption is a positional externality.
E) each other's consumption is a common property issue.

Question

Quizplus · Accepted Answer

The fact that Steve feels worse off when Don's consumption rises and vice versa shows that each other's consumption is a positional externality for both Steve and Don.

Steve and Don Are Neighbours Who Work at the Same