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:

Pack-Years

A measure used to quantify the amount of cigarettes smoked over a period, calculated by multiplying the number of packs per day by the number of years the person has smoked.

Tobacco Use

The habitual consumption of tobacco products, including cigarettes, cigars, smokeless tobacco, and other forms, typically associated with health risks such as cancer and heart disease.

Smoking

The inhalation of the smoke of burning tobacco encased in cigarettes, pipes, and cigars, a well-known hazardous habit linked to various diseases.

Thyroid Gland

An endocrine gland located in the neck that produces hormones regulating metabolism, body energy, and the body's use of other hormones and vitamins.