A shift from S 1 to S 2 reflects the change that happens when a negative externality is taken into account.A shift from D 1 to D 2 reflects the change that happens when a positive externality is taken into account.
-Refer to the above figures.A negative externality exists that has not been corrected.Price and quantity will be
A) $P _ { 1 }$ and $\mathrm { Q } _ { 1 }$ .
B) $P _ { 2 }$ and $\mathrm { Q } _ { 2 }$ .
C) $\mathrm { P } _ { 3 }$ and $\mathrm { Q } _ { 3 }$ .
D) $\mathrm { P } _ { 4 }$ and $\mathrm { Q } _ { 4 }$ .

Question

A shift from S 1 to S 2 reflects the change that happens when a negative externality is taken into account.A shift from D 1 to D 2 reflects the change that happens when a positive externality is taken into account.
-Refer to the above figures.A negative externality exists that has not been corrected.Price and quantity will be
A) $P _ { 1 }$ and $\mathrm { Q } _ { 1 }$ . 
B) $P _ { 2 }$ and $\mathrm { Q } _ { 2 }$ . 
C) $\mathrm { P } _ { 3 }$ and $\mathrm { Q } _ { 3 }$ . 
D) $\mathrm { P } _ { 4 }$ and $\mathrm { Q } _ { 4 }$ .

Quizplus · Accepted Answer

The Answer of  A shift from S 1 to S 2 reflects the change that happens when a negative externality is taken into account.A shift from D 1 to D 2 reflects the change that happens when a positive externality is taken into account.
-Refer to the above figures.A negative externality exists that has not been corrected.Price and quantity will be
A) $P _ { 1 }$ and $\mathrm { Q } _ { 1 }$ . 
B) $P _ { 2 }$ and $\mathrm { Q } _ { 2 }$ . 
C) $\mathrm { P } _ { 3 }$ and $\mathrm { Q } _ { 3 }$ . 
D) $\mathrm { P } _ { 4 }$ and $\mathrm { Q } _ { 4 }$ .

A Shift from S1 to S2 Reflects the Change That P1P _ { 1 }P1​

A Shift from S₁ to S₂ Reflects the Change That $P _ { 1 }$