If a positive consumption externality were present in a market, the social benefit curve would be:
A)below the private demand curve.
B)above the private demand curve.
C)identical to the private demand curve.
D)The social benefit curve's location cannot be determined without more information.

Question

Quizplus · Accepted Answer

When a positive consumption externality is present, the social benefit of consuming a good or service exceeds the private benefit. This means that the social benefit curve is above the private demand curve, reflecting the additional benefits to society that are not captured by the private market demand.

If a Positive Consumption Externality Were Present in a Market