How Does a Positive Network Effect Influence the Private and Social

question 164

Multiple Choice

How does a positive network effect influence the private and social demand curves for a network good?

• A) Private demand shifts left, and social demand shifts right.
• B) Private demand shifts right, and social demand shifts left.
• C) Both private demand and social demand shift left.
• D) Both private demand and social demand shift right.

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Definitions:

Social Trend

Represents the general direction in which society is moving, often determined by changes in culture, technology, or behavior.

Environmentally Friendly

Describes products, services, or practices that cause minimal or no harm to the ecosystem and environment, often focusing on conservation of resources and reduction of pollution.

People's Beliefs

encompass the convictions or acceptances that individuals hold as true, often influencing their behavior and perspective on life.

Culture

The shared customs, arts, social institutions, and achievements of a particular nation, people, or other social group.