In the market for a network good, the private
A) demand curve lies to the left of the social demand curve.
B) demand curve lies to the right of the social demand curve.
C) supply curve lies to the left of the social supply curve.
D) supply curve lies to the right of the social supply curve.

Question

Quizplus · Accepted Answer

In the market for a network good, the private demand curve lies to the left of the social demand curve because the social demand curve accounts for the positive externalities or network effects that an individual's consumption has on others' utility, which are not considered in the private demand.

In the Market for a Network Good, the Private