Internalising a Positive Production Externality Will Cause the Demand Curve

question 127

Multiple Choice

Internalising a positive production externality will cause the demand curve faced by an industry to:

• A)shift to the right
• B)shift to the left
• C)become more elastic
• D)remain unchanged

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Definitions:

More Likely

Indicates a higher probability or chance of something occurring compared to other possibilities.

Counterconditioning

A behavior therapy procedure that uses classical conditioning to evoke new responses to stimuli that are triggering unwanted behaviors.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Unwanted Response

A reaction, often in the context of behavior or psychology, that is not desired or intended, sometimes resulting from external stimuli or internal conflicts.