The Net Increase to Total Surplus When a Negative Externality

question 51

Multiple Choice

The net increase to total surplus when a negative externality is corrected or eliminated is due to:

• A) the transfer of surplus from those affected by the externality to the consumer.
• B) the reduced number of transactions in the market.
• C) the transfer of surplus from consumer or producer to those affected by the externality.
• D) None of these statements is true.

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