The Graphs Below Refer to Two Separate Product Markets

question 25

Multiple Choice

The graphs below refer to two separate product markets.Assume that society's optimal level of output in each market is Q₀ and that government purposely shifts the market supply curve from S to S₁ in diagram (a) and from S to S₂ in diagram (b) .We can conclude that the government is correcting for:

• A) negative externalities in diagram (a)and positive externalities in diagram (b).
• B) positive externalities in diagram (a)and negative externalities in diagram (a).
• C) negative externalities in both diagrams.
• D) positive externalities in both diagrams.

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Definitions:

Speech Sound Disorder

A condition where a person has difficulty producing or pronouncing sounds correctly, affecting verbal communication.

Articulation

The physical production of particular speech sounds and the clarity with which these sounds are produced in spoken language.

Childhood Onset Fluency

A speech disorder originating in childhood that affects the flow, speed, and rhythm of speech, often referred to as stuttering.

Stutters

A speech disorder characterized by repeated or prolonged sounds, syllables, or words, disrupting the normal flow of speech.