The figure below shows the demand and supply curves in the market for elementary education. Figure 13.1
In the figure,
D: Private demand curve for elementary education
D + s: Demand curve which includes public benefits
S: Supply curve of education
Price and Quantity have been taken on vertical and horizontal axes respectively.
-Figure 13.1 represents a situation of:
A) positive externalities.
B) negative externalities.
C) excess capacity.
D) optimal provision of a public goods.
E) comparative advantage.
Correct Answer:
Verified
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