When externalities are present in a market, the well-being of market participants
a. and market bystanders are both directly affected.
b. and market bystanders are both indirectly affected.
c. is directly affected, and market bystanders are indirectly affected.
d. is indirectly affected, and market bystanders are directly affected.
c
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Explain why it may be advantageous to have technological change explained by, rather than outside of, a growth model
What will be an ideal response?
The price elasticity of demand for gasoline is 0.27 and for wine is 2.9 . If the government had the choice of taxing only one, which of the following should it choose?
a. tax gasoline b. tax wine c. tax neither, but raise the price elasticity of demand for each d. tax neither, but lower the price elasticity of demand for each e. tax neither, but raise the price elasticity of demand for gasoline and lower it for wine