When Negative Externalities Exist, the Private Market Equilibrium Represents a

question 161

Multiple Choice

When negative externalities exist, the private market equilibrium represents a

• A) market price which is too low and a market quantity which is too low.
• B) market price which is too low and a market quantity which is too high.
• C) market price which is too high and a market quantity which is too low.
• D) market price which is too high and a market quantity which is too high.

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Definitions:

Renal Artery

Artery that originates from the aorta and delivers blood to the kidney.

Celiac Trunk

A major artery in the abdomen that supplies blood to the liver, stomach, spleen, and other organs.

Hepatic Artery

Branch of the aorta that delivers blood to the liver.

Saphenous Vein

A large vein running along the length of the leg, commonly used in grafts during coronary artery bypass surgery.