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

question 149

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.Externalities exist in both panels.After correcting for the externalities the prices should be

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

Grasp the basic principles of macroeconomic analysis and its focus areas.

Learn how to analyze economic activities using marginal benefit and marginal cost.

Understand the significance of graphing in economic analysis, including slopes, relationships between variables, and interpreting economic models.

Identify the factors affecting a nation's production possibilities and economic growth.

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