When Externalities Exist,what Do Buyers and Sellers Do and How

question 23

Multiple Choice

When externalities exist,what do buyers and sellers do and how do their actions affect market equilibrium

• A)They neglect the external effects of their actions, but the market equilibrium is still efficient.
• B)They do not neglect the external effects of their actions, and the market equilibrium is efficient.
• C)They neglect the external effects of their actions, and the market equilibrium is not efficient.
• D)They do not neglect the external effects of their actions, and the market equilibrium is not efficient.

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