________ Occur When the Actions of One Individual (Or Group

question 34

Short Answer

________ occur when the actions of one individual (or group of individuals)affect another individual's well-being,but the relevant costs (or benefits)are not reflected in market prices.

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Definitions:

Clean Air

The condition of the atmosphere when it is free from pollutants, contaminants, and other harmful substances.

Network Externality

The effect that an additional user of a good or service has on the value of that product to others, often increasing the utility as more people use it.

Elastic

Refers to the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Inelastic

Describes a situation where a change in the price of a good or service has a relatively small effect on the quantity demanded or supplied.