When There Are Positive Externalities Associated with the Consumption of a Good

question 18

Multiple Choice

When there are positive externalities associated with the consumption of a good, we can expect:

• A) the private demand curve to lie above the social demand curve.
• B) the private supply curve to lie below the social supply curve.
• C) the private supply curve to lie above the social supply curve.
• D) the private demand curve to lie below the social demand curve.

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Definitions:

Exchange Rate

How much one currency is worth in terms of crossing over to another currency.

Mexican Demand Curve

A graphical representation showing the quantity of goods that consumers in Mexico are willing and able to purchase at various prices.

U.S. Dollars

The official currency of the United States, widely used as a standard of exchange in international markets.

Pesos

The currency unit used in several countries, notably Mexico and Argentina, among others.