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Negative Externality
A situation where the production or consumption of a good or service results in a harmful effect on unrelated third parties.
Market Equilibrium
Occurs when the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to a stable price.
Socially Optimal Level
An economic condition where resources are allocated in a way that maximizes the overall benefit to society, considering both efficiency and equity.
Regulation
A rule or directive made and maintained by an authority.
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