Refer to the figure above. When the demand curve for flash drives is D and the supply curve of flash drives is S1, what is the shortage in the market if the price is $4?

The current deficit minus net interest is called the

A) primary deficit. B) net current deficit. C) current surplus. D) primary current deficit.

Internalizing a negative externality means _____

a. changing the incentives of consumers to ignore the externality b. changing the incentives of producers to act as if there were no market for the external cost c. changing the incentives of producers to act as if there were a market for the external cost d. changing the incentives of consumers to complain about the externality to the producers