The Figure Given Below Shows the Demand and Supply Curves

question 24

Multiple Choice

The figure given below shows the demand and supply curves of steel.S_p is the private supply curve, and S_s is the social supply curve that includes both private costs and external costs. Figure 13.2 According to Figure 13.2:

• A)both points a and b are socially efficient.
• B)both points a and b are inefficient.
• C)point a represents the social equilibrium, whereas point b represents the private equilibrium.
• D)point a represents the private equilibrium, whereas point b represents the social equilibrium.
• E)when external costs are zero, the socially efficient output level is equal to 0Q_s units.

---

Definitions:

Tolman

An influential psychologist known for his work in cognitive behaviorism and for proposing the concept of latent learning.

Motivated

Having a reason or reasons for acting or behaving in a particular way, often driven by internal or external forces.

Behavioral Autonomy

The capacity of an individual to make an independent choice and act based on personal motives or values.

Expectation

The anticipation of a specific outcome, event, or condition, influenced by previous experiences, beliefs, and psychological states.