Multiple Choice
A shift from S1 to S2 reflects the change that happens when a negative externality is taken into account.A shift from D1 to D2 reflects the change that happens when a positive externality is taken into account.
-Refer to the above figures.A positive externality exists that has not been corrected.Price and quantity will be
A) 
and 
.
B) 
and 
.
C) 
and 
.
D) 
and 
.
Correct Answer:
Verified
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