A Positive Externality

question 235

Multiple Choice

A positive externality

• A)is a benefit to the producer of the good.
• B)is a benefit to the consumer of the good.
• C)is a benefit to someone other than the producer and consumer of the good.
• D)results in an optimal level of output.

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Definitions:

Demand Function

An equation showing the relationship between the quantity of a good consumers want to buy and its price, alongside other factors like income and prices of related goods.

Buick Owner's Demand

The specific preferences and buying patterns of individuals who own or are interested in purchasing Buick vehicles.

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Gas Pump

A gas pump is a machine at a filling station that is used to transfer gasoline from a reservoir to a vehicle's fuel tank.