A shift from S1 to S2 reflects the change that happens when a negative externality is taken into account. A shift from D1 to D2 reflects the change that happens when a positive externality is taken into account.
-Refer to above figures. Prior to the shift of the curves, which panel and which curve involve the existence of negative externality?
Definitions:
Axons
Long, threadlike parts of a nerve cell along which impulses are conducted from the cell body to other cells.
Impulses
Sudden desires or urges to act without conscious thought, often based on immediate emotional responses.
Passive
Exhibiting or characterized by the acceptance or allowing of what happens or what others do, without active response or resistance.
Environments
Surroundings in which an organism lives, including all living and non-living elements that affect its life and development.
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