When Negative Externalities Exist, the Private Market Equilibrium Represents a

question 161

Multiple Choice

When negative externalities exist, the private market equilibrium represents a

• A) market price which is too low and a market quantity which is too low.
• B) market price which is too low and a market quantity which is too high.
• C) market price which is too high and a market quantity which is too low.
• D) market price which is too high and a market quantity which is too high.

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Definitions:

Head Lice

Parasitic insects that live on the human scalp and feed on blood, causing itching and discomfort; commonly spread by close personal contact.

Pediculosis Capitis

A common infestation of the scalp by head lice, leading to itching and discomfort.

Lindane

A chemical insecticide used in prescription medications to treat lice and scabies, though its use is controversial due to potential toxicity.

Pediculosis

An infestation of lice on the human body, commonly affecting the head, body, or pubic area.