To Solve for a Negative Externality in a Market, Conceptually

question 32

Multiple Choice

To solve for a negative externality in a market, conceptually, one would need to:

• A) shift the supply curve sufficiently to the left
• B) shift the demand curve sufficiently to the left
• C) shift the supply curve sufficiently to the right
• D) shift the demand curve sufficiently to the right
• E) do nothing

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Definitions:

Material Misrepresentation

False or misleading statements that significantly affect another party's decision in a transaction.

Reasonable Person

A hypothetical individual in the legal system who exercises average care, skill, and judgment in conduct and is used as a standard to assess behavior.

Duress By Physical Force

The use of physical force or threats to compel someone to act against their will or to consent to an agreement.

Duress By Improper Threat

A situation where an individual is forced or coerced into a contract or legal agreement under threats that are unlawful or unethical.