A Shift from S₁ to S₂ Reflects the Change That $P _ { 1 }$

question 333

Multiple Choice

A shift from S₁ to S₂ reflects the change that happens when a negative externality is taken into account.A shift from D₁ to D₂ reflects the change that happens when a positive externality is taken into account.
-Refer to the above figures.If a positive externality that existed becomes corrected,price and quantity will become

• A) \(P _ { 1 }\) and \(\mathrm { Q } _ { 1 }\) .
• B) \(P _ { 2 }\) and \(\mathrm { Q } _ { 2 }\) .
• C) \(\mathrm { P } _ { 3 }\) and \(\mathrm { Q } _ { 3 }\) .
• D) \(\mathrm { P } _ { 4 }\) and \(\mathrm { Q } _ { 4 }\) .

---

Definitions:

White Water Rafting

An outdoor adventure sport that involves navigating rivers with varying degrees of rough water using an inflatable raft.

Cheesecake

A sweet dessert consisting of one or more layers, the main, and thickest layer contains a mixture of soft, fresh cheese, eggs, and sugar.

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity demanded, leading to a stable market condition.

Consumer Surplus

The variation between the total value consumers can and will offer for a good or service and the amount they actually expend.