Which of the Following Statements Is Correct

question 105

Multiple Choice

Which of the following statements is correct?

• A)Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and decrease the price of the good produced.
• B)Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and increase the price of the good produced.
• C)Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and decrease the price of the good produced.
• D)Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and increase the price of the good produced.

Comprehend the legal concepts related to insurance and liability.

Understand the process and benefits of making a household inventory.

Recognize the significance of personal liability and umbrella policies.

Differentiate between various forms of homeowner's insurance and their coverage.

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Definitions:

Temporary Surplus

A situation where the supply of a product exceeds its demand for a short period, often leading to price reductions.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a particular price.

Maximum Price

The highest possible price that can be charged for a good or service, often regulated by law.

Equilibrium Price

The price at which the supply of an item equals the demand for that item within a market, resulting in economic equilibrium.