Internalising a negative consumption externality will cause the market supply curve to shift to the left.

Name: Internalising a negative consumption externality will cause the market supply curve to shift to the left.
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Question

Quizplus · Accepted Answer

Internalising a negative consumption externality typically affects the demand curve, not the supply curve. It causes the demand curve to shift to the left as consumers reduce their consumption due to the internalized costs.

Internalising a Negative Consumption Externality Will Cause the Market Supply