-Exhibit N-5 depicts a market
A) with demand curves reflecting both government and private demands for the good
B) that cannot achieve market equilibrium
C) with negative externalities
D) whose market price is too low
E) with positive externalities

Question

-Exhibit N-5 depicts a market
A) with demand curves reflecting both government and private demands for the good 
B) that cannot achieve market equilibrium 
C) with negative externalities 
D) whose market price is too low 
E) with positive externalities

Quizplus · Accepted Answer

The market depicted in Exhibit N-5 has positive externalities, as the consumption of the good generates benefits for society that are not reflected in the market price.

-Exhibit N-5 Depicts a Market