Supply and demand analysis
A)can be used to understand solutions to pollution, but not causes.
B)can be used to analyze how externalities lead to environmental problems.
C)cannot be used to analyze pollution, which is a physical and chemical problem.
D)cannot be used to solve the pollution problem, but can be used to analyze it.

Question

Quizplus · Accepted Answer

Supply and demand analysis can be used to understand how externalities, such as pollution, affect markets and lead to environmental problems. This is because externalities are costs or benefits not reflected in market prices, influencing supply and demand in ways that can lead to overproduction or underproduction of goods that cause pollution.

Supply and Demand Analysis