If,after an Externality Is Corrected,the Equilibrium Price Rises and the Equilibrium

question 182

Multiple Choice

If,after an externality is corrected,the equilibrium price rises and the equilibrium quantity falls,the externality must have been a(n)

• A) external benefit.
• B) internal cost.
• C) external cost.
• D) positive externality.
• E) positional externality.

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Definitions:

Readjustment

The process of adapting or becoming accustomed to a new situation or environment.

Subjective Appraisal

The process of evaluating or judging something based on personal feelings, tastes, or opinions rather than external facts.

Type of Emotion

Categories or classifications of emotions that describe the variety of human feelings, such as happiness, sadness, anger, fear, and love.

Stress

A physical or emotional response to events that cause bodily or mental tension.