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. P1 and Q1.
B. P2 and Q2.
C. P3 and Q3.
D. P4 and Q4.
Answer: B
Economics
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A) An unsold inventory of automobiles produced in that year B) The total amount steel used in the production of automobiles in that year C) The total amount of flour used by bakeries to make bread in that year D) An unused stock of goods produced in the previous year
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A package of nontraded financial instruments can be transformed into a traded financial instrument through the process of
A) collateralization. B) repurchasing. C) securitization. D) underwriting.
Economics