If the Market Supply and Demand Curves for a Common

question 208

Multiple Choice

If the market supply and demand curves for a common resource include all costs, then:

• A)the common resource will be underused.
• B)the common resource will be overused.
• C)the common resource will be used at the socially optimal level.
• D)there is an external cost to society from the common resource.

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Definitions:

Neutral Substance

A chemical compound that is neither acidic nor basic and does not change the color of litmus paper.

Acid

Molecule that is a proton donor; any substance that releases hydrogen ions (H+).

Solutes

Substances dissolved in a liquid (solvent) to form a solution, such as salts in water.

Solvents

Substances, typically liquids, that can dissolve other substances to form a solution.