Externalities can arise from both production and consumption. Negative production externalities cause the demand curve to shift leftward while positive consumption externalities result is a rightward shift in the demand curve. a. True b. False
Externalities can arise from both production and consumption. Negative production externalities cause the demand curve to shift leftward while positive consumption externalities result is a rightward shift in the demand curve. a. True b. False
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information
Section: Chapter Questions
Problem 8QP
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Externalities can arise from both production and consumption. Negative production externalities cause the demand curve to shift leftward while positive consumption externalities result is a rightward shift in the demand curve.
a.
True
b.
False
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