The inclusion of external costs in the decision making process determining equilibrium price and quantity leads to

Question

Quizplus · Accepted Answer

The inclusion of external costs such as pollution or other negative impacts can increase the overall cost of production and consumption, resulting in higher prices for goods and services. This can also lead to a decrease in quantity demanded as some consumers may no longer be willing or able to pay the higher price. Therefore, the correct choice is D, higher priced items and a decline in quantity.

The Inclusion of External Costs in the Decision Making Process