If a Positive Consumption Externality Were Present in a Market

question 98

Multiple Choice

If a positive consumption externality were present in a market, the social benefit curve would be:

• A)below the private demand curve.
• B)above the private demand curve.
• C)identical to the private demand curve.
• D)The social benefit curve's location cannot be determined without more information.

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Definitions:

Salary Demand

The amount of money or compensation an employee requests or requires from an employer for their work or services.

Medical Benefits

Health-related advantages or coverage provided by employers or government programs to individuals, typically including services like medical treatments, surgeries, and hospital stays.

Mediation

A form of conflict resolution where a neutral third party aids the disputing sides in reaching a mutually satisfactory agreement.

Neutral Third Party

An unbiased individual or group engaged to mediate or arbitrate disputes between two parties.