If a Market Is Subject to a Positive Externality

question 76

Multiple Choice

If a market is subject to a positive externality,

• A) the demand curve reflecting social benefit will be to the right of the demand curve representing private benefit.
• B) there is only one demand curve.
• C) the demand curve reflecting social benefit will be to the left of the demand curve representing private benefit.
• D) private benefit will exceed social benefit.