If There Is Pollution in Producing a Product, Then the Market

question 232

Multiple Choice

If there is pollution in producing a product, then the market equilibrium price

• A)is too high and equilibrium quantity is too low.
• B)and equilibrium quantity are too low.
• C)and equilibrium quantity are too high.
• D)is too low and equilibrium quantity is too high.

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Definitions:

Short-Run Supply

The total amount of goods and services that producers are willing and able to sell in the market at various prices over a short period, often influenced by fixed factors of production.

Long-Run Supply

A market condition reflecting the total output of goods and services providers are willing and able to produce, considering all inputs are variable.

Short Run

Refers to a period in which at least one input is fixed, limiting the capacity of the economy or firm to adjust to changes in demand.

Long Run

A period in which all inputs can be adjusted by firms, allowing for full adjustment to market conditions or changes in production technology.