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 negative externality existed but has been corrected.Price and quantity will be
A) 
and 
.
B) 
and 
.
C) 
and 
.
D) 
and 
.
Correct Answer:
Verified
Related Questions
Q63: Markets tend to underallocate resources to the
Q66: Markets tend to overallocate resources to the
Q72: Safe Bank has an outside display which
Q81: An effluent fee is a
A) subsidy given
