When There Are Positive Externalities Associated with the Consumption of a Good

question 227

Multiple Choice

When there are positive externalities associated with the consumption of a good, we can expect the market:

• A) demand curve to lie above the social demand curve.
• B) demand curve to lie below the social demand curve.
• C) supply curve to lie above the social supply curve.
• D) supply curve to lie below the social supply curve.
• E) demand curve to lie below the social supply curve.

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Definitions:

Environmental Factors

Various elements in the surrounding environment that can influence physical, mental, and socio-economic outcomes for individuals and communities.

Heredity Factors

The genetic components passed from parents to offspring, influencing traits and predispositions.

Behaviour

Includes the actions or reactions of an organism, usually in relation to its environment, which can be observable or measurable.

Theoretically Diverse

Encompassing a wide range of theories within a field or topic, allowing for multiple viewpoints.