When a negative externality is present in a market, consumers will purchase _______ the socially optimal quantity.
A)zero, unlike
B)more than
C)the same amount as
D)less than

Question

Quizplus · Accepted Answer

When a negative externality is present, it means that the cost of the product to society is higher than the cost to the consumer. Therefore, consumers will purchase more of the product than is socially optimal because they are not bearing the full cost of their consumption.

When a Negative Externality Is Present in a Market, Consumers