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A Shift from S1 to S2 Reflects the Change That

question 69

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  A shift from S1 to S2 reflects the change that happens when a negative externality is taken into account. A shift from D1 to D2 reflects the change that happens when a positive externality is taken into account. -Refer to above figures. Prior to the shift of the curves, which panel and which curve involve the existence of negative externality? A)  Panel 1 and S1 B)  Panel 1 and S2 C)  Panel 2 and D1 D)  Panel 2 and D2 A shift from S1 to S2 reflects the change that happens when a negative externality is taken into account. A shift from D1 to D2 reflects the change that happens when a positive externality is taken into account.
-Refer to above figures. Prior to the shift of the curves, which panel and which curve involve the existence of negative externality?


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