If a Good That Generates Negative Externalities Was Priced to Take

question 41

Multiple Choice

If a good that generates negative externalities was priced to take into account these negative externalities, then its:

• A)price would decrease and its output would increase.
• B)output would increase but its price would remain constant.
• C)price would increase and its output would decrease.
• D)price would increase but its output would remain constant.

---

Definitions:

Vendors

Entities or individuals that supply goods or services to another company, often playing a crucial role in the supply chain.

Timely Manner

Completing or achieving something within the expected or allocated time.

Compounded Semiannually

An interest calculation method where interest is added to the principal amount twice a year, leading to interest on interest by the period's end.

Investment

A placement of capital in expectation of deriving income or profit.