Figure 155 Figure 15

question 126

Multiple Choice

Figure 15.5 Figure 15.5 shows a market with an externality.The current market equilibrium output of Q₁ is not the economically efficient output.The economically efficient output is Q₂.
-Refer to Figure 15.5.Suppose the current market equilibrium output of Q₁ is not the economically efficient output because of an externality.The economically efficient output is Q₂.In that case, diagram shows

• A)the effect of a subsidy granted to producers of a good.
• B)the effect of an excess demand in a market.
• C)the effect of a positive externality in the consumption of a good.
• D)the effect of a negative externality in the consumption of a good.

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Definitions:

Five-point Scale

A measurement tool used in questionnaires to evaluate opinions or attitudes, often ranging from strongly agree to strongly disagree.

Blinding

A method in experimental design that prevents participants, experimenters, or both from knowing which intervention participants are receiving to reduce bias.

Average Prices

The mean amount of money required to purchase a particular set of goods or services.

Supermarket Chains

Companies that own or operate multiple supermarket stores across different locations.