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 the above figures. Externalities exist in both panels. After correcting for the externalities the prices should be
Definitions:
Gender Gap
The disparities between males and females, often referring to differences in pay, employment opportunities, political representation, or health outcomes.
Descending Neural Pathway
Neural tracts that carry motor signals from the brain down the spinal cord to the muscles to initiate movement.
Pain
A distressing feeling and emotional reaction linked to real or possible harm to body tissues, or expressed as if such harm has occurred.
Midbrain
A central part of the brainstem involved in functions such as vision, hearing, motor control, sleep/wake, arousal (alertness), and temperature regulation.
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