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question 95

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Use the following to answer questions:
Figure: Chocolate Use the following to answer questions: Figure: Chocolate   -(Figure: Chocolate)  If the price in the diagram is $5, what will happen? A)  The price will increase because of a shortage. B)  The price will decrease because of a shortage. C)  The price will increase because of a surplus. D)  The price will decrease because of a surplus.
-(Figure: Chocolate) If the price in the diagram is $5, what will happen?


Definitions:

Public Good

A good that is non-excludable and non-rival in consumption, meaning no one can be prevented from using it and one person's use does not reduce availability to others.

Marginal Social Benefit

The additional benefit to society from producing one more unit of a good or service.

Marginal Benefit

The bonus satisfaction or benefit gained by consuming one more unit of a good or service.

Marginal Social Benefit

The additional benefit to society from consuming one more unit of a good or service.

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