Who Is Affected When a Pigouvian Subsidy Is Imposed on a Market

question 77

Multiple Choice

Who is affected when a Pigouvian subsidy is imposed on a market with a positive externality?

• A) Producers
• B) Consumers
• C) Those affected by the externality
• D) All of these groups would be affected.

---

Definitions:

Ecotone

A transitional area between two or more distinct ecological communities, exhibiting characteristics of both and often rich in species diversity.

Successional Area

An ecological region undergoing succession, a process of ecological change where one community of organisms gradually replaces another.

Fundamental Niche

The full range of environmental conditions and resources an organism can theoretically use without the influence of competition or predators.

Realized Niche

The actual environmental conditions under which an organism lives, including factors like habitat, resources, and competitors, as opposed to potential living spaces.