In recent decades, other countries have caught up to the U.S. and even surpassed it in some important economic arenas

Suppose the demand for bananas increases. Explain how the price of bananas adjusts after the increase in demand

What will be an ideal response?

If consumers were able to receive the full social benefits associated with the consumption of goods involving positive externalities, other things being equal, there would probably be: a. an increase in consumption

b. a decrease in consumption. c. a greater misallocation of resources. d. a decrease in the market price of the product.