Use the Figure Below to Answer the Following Question(s)

question 6

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 5-2
-Figure 5-2 illustrates the market for a product that generates an external cost. S₁ is the private market supply curve, while S₂ is the supply curve including the external cost. Which of the following is true?

• A) Relative to economic efficiency, output of the good will be too large and the price too low.
• B) Relative to economic efficiency, output of the good will be too large and the price too high.
• C) Relative to economic efficiency, output of the good will be too small and the price too low.
• D) Relative to economic efficiency, output of the good will be too small and the price too high.

---

Definitions:

Displays Contents

A general description referring to any method or function that shows or outputs the contents of a data structure or variable to the user.

Bytes

The basic unit of storage in computer memory, typically consisting of 8 bits, used to store a single character or a small amount of data.

Array

A data structure consisting of a collection of elements (values or variables), each identified by an index or key.