If negative externalities are taken into account in the market, then output will _____, and price will _____.

Name: If negative externalities are taken into account in the market, then output will _____, and price will _____.
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Question

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When negative externalities are considered, the cost of production effectively increases, leading to a decrease in output as producers cut back on production. Consequently, the reduced supply can lead to higher prices for consumers.

If Negative Externalities Are Taken into Account in the Market