Governments can increase the consumption of a product that creates positive externalities by
A)subsidising the production of the product so that the supply is increased and market price is reduced.
B)taxing the production and consumption of the product.
C)convincing everyone to consume the good.
D)assigning property rights to the producers of the product.

Question

Quizplus · Accepted Answer

By subsidizing the production of the product, the supply will increase, making it more affordable for consumers, which can lead to an increase in consumption. This can be an effective way to increase the consumption of a product that creates positive externalities without discouraging production.

Governments Can Increase the Consumption of a Product That Creates