If There Are External Benefits Associated with the Consumption of a Good

question 21

Multiple Choice

If there are external benefits associated with the consumption of a good or service,

• A)the market demand curve will overestimate the true demand curve.
• B)the market demand curve will underestimate the true demand curve.
• C)consumers are paying for all these benefits.
• D)the market demand curve will be the vertical summation of the individual demand curves.

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Definitions:

Quad Cane

A mobility aid with a four-footed base, providing greater stability than a standard cane for people who are partially disabled or need additional support when walking.

Hemiparesis

Weakness on one side of the body, often a result of stroke or brain injury.

Ambulation

The act of walking or moving from one place to another using one's feet.

Graduated Compression Stockings

Specialized hosiery designed to improve blood flow and reduce swelling in the legs by applying varied levels of pressure.