If a program requires people to pay a price that reflects the cost of an externality associated with their actions that they previously did not pay, it will be in their best interest to change their behavior.

Question

Quizplus · Accepted Answer

When people are required to pay for the external costs of their actions, they have a financial incentive to change their behavior to avoid or reduce these costs, aligning their private costs with social costs.

If a Program Requires People to Pay a Price That