Each of the following is true of a positive externality except The quantity after a corrective subsidy is less than the existing market equilibrium quantity. Internalizing the externality causes the demand curve to shift up and to the right. The quantity after a corrective subsidy is greater than the existing market equilibrium quantity. The socially optimal price is lower than the equilibrium price. A Moving to another question will save this response. O O
Each of the following is true of a positive externality except The quantity after a corrective subsidy is less than the existing market equilibrium quantity. Internalizing the externality causes the demand curve to shift up and to the right. The quantity after a corrective subsidy is greater than the existing market equilibrium quantity. The socially optimal price is lower than the equilibrium price. A Moving to another question will save this response. O O
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Transcribed Image Text:Each of the following is true of a positive externality except
The quantity after a corrective subsidy is less than the existing market equilibrium quantity.
Internalizing the externality causes the demand curve to shift up and to the right.
The quantity after a corrective subsidy is greater than the existing market equilibrium quantity.
The socially optimal price is lower than the equilibrium price.
A Moving to another question will save this
response.
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