Exhibit 8-1
-Refer to Exhibit 8-1. If the magnitude of the external benefits increased
A)The demand curve including external benefits would shift up
B)The efficient price would increase
C)The market price would increase
D)Both a and b are true

Question

​Exhibit 8-1 
-Refer to Exhibit 8-1. If the magnitude of the external benefits increased
A)​The demand curve including external benefits would shift up 
B)​The efficient price would increase 
C)​The market price would increase 
D)​Both a and b are true

Quizplus · Accepted Answer

If the magnitude of external benefits increased, the demand curve including external benefits would shift up, leading to a higher efficient price. Therefore, both options A and B are true.

​Exhibit 8-1 -Refer to Exhibit 8-1. If the Magnitude of the External

Exhibit 8-1 -Refer to Exhibit 8-1. If the Magnitude of the External