When Consumption of a Good Creates Positive Externalities

question 47

Multiple Choice

When consumption of a good creates positive externalities,

• A)the private demand curve shifts rightward
• B)the private demand curve shifts leftward
• C)the private demand curve is below the marginal social benefit curve
• D)the private demand curve is above the marginal social benefit curve
• E)the equilibrium quantity determined by the free private market is too high

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