Internalizing a Positive Externality Will Cause the Demand Curve to

question 85

Multiple Choice

Internalizing a positive externality will cause the demand curve to

• A)shift to the right.
• B)shift to the left.
• C)become more elastic.
• D)remain unchanged.

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Definitions:

Rightward Shift

In economic graphs, a movement to the right of a curve, indicating an increase in supply or demand depending on the context.

Home-Delivered Pizza

Pizza that is made and delivered directly to a customer's home by a restaurant or pizza delivery service.

Population

The entire group of individuals or instances about whom we seek to make conclusions in statistical analysis or the number of inhabitants in a particular region or place.

Increase in Demand

A situation where there is a rise in the quantity of a product or service that consumers are willing and able to purchase at existing prices.