Good weather in cities such as San Diego

Question

Quizplus · Accepted Answer

Good weather in cities such as San Diego may attract more tourists and increase the demand for housing, which could lead to higher housing costs and other indirect expenses for residents. Therefore, while residents do not directly pay for the weather, they bear the cost of living in a desirable location with good weather. This is an example of a positive externality where the benefits of good weather are enjoyed by many, but the costs are borne by the few who live in the area.

Good Weather in Cities Such as San Diego