Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 13, Problem 1SCQ
Do market demand
Expert Solution & Answer
To determine
The analysis whether the positive externalities are reflected on demand curve or not.
Answer to Problem 1SCQ
The market demand does not reflect or indicates the effect of positive externalities as it shows only private benefits.
Explanation of Solution
The market demand curve is not meant for reflecting the positive externalities. The reason is the nature of benefits in the positive externalities i.e. they are spillover to the parties which means that they are type of social benefits. The market demand curve indicates the private benefits of the people who are the consumer of the goods and do not show the social benefits on the curve.
Conclusion:
Thus, the positive externalities cannot be reflected on the demand curve of market.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
why do externalities make market outcomes inefficient?
How do negative externalities cause market failure?
Why do economists care about positive externalities?
Chapter 13 Solutions
Principles of Economics 2e
Ch. 13 - Do market demand curves reflect positive...Ch. 13 - Suppose that Sonys R. Is this a private or social...Ch. 13 - The Gizmo Company is planning to develop new...Ch. 13 - The Junkbuyers Company travels from home to home,...Ch. 13 - When residents in a neighborhood tidy it and keep...Ch. 13 - Education provides both private benefits to those...Ch. 13 - Which of the following goods or services are...Ch. 13 - Are the following goods non-rival in consumption?...Ch. 13 - In what ways (it) company investments in research...Ch. 13 - Will the demand for borrowing and investing in R&D...
Ch. 13 - Why might private markets tend to provide too few...Ch. 13 - What can government do to encourage the...Ch. 13 - What are the two key characteristics of public...Ch. 13 - Name two public goods and explain why they are...Ch. 13 - What is the free rider problem?Ch. 13 - Explain why the federal government funds national...Ch. 13 - Call a company be guaranteed all of the Social...Ch. 13 - Is it inevitable that government must become...Ch. 13 - How do public television stations, like PBS, try...Ch. 13 - Why is a football game on ESPN a quasi-public good...Ch. 13 - Provide two examples of goods/services that are...Ch. 13 - Radio stations, tornado sirens, light houses, and...Ch. 13 - HighFlyer Airlines wants to build new airplanes...Ch. 13 - Assume that the marginal private costs of a film...Ch. 13 - Becky and Sarah are sisters 1who share a room....
Additional Business Textbook Solutions
Find more solutions based on key concepts
Using the numbers in the preceding question, what is the size of Ectenias labor force? a. 50 b. 60 c. 70 d. 80
Principles of Economics (MindTap Course List)
What are some of the problems with using the CPI?
Construction Accounting And Financial Management (4th Edition)
Berettis Food Mart has 6,000 pounds of raw pork nearing its expiration date. Each pound has a cost of $5.50. Th...
Principles of Accounting Volume 2
Which of the following is not considered to be part of the internal control structure of a company? A. Ensure t...
Principles of Accounting Volume 1
What is the first step in defining an organizations pay-for-performance strategy?
Principles of Management
Prepare a production cost report and journal entries (Learning Objectives 4 5) Vintage Accessories manufacture...
Managerial Accounting (5th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Explain the concept of externalities; include an example, as well as how the government takes action to correct it.arrow_forwardWhat is an externality? Provide two examples each of positive and negative externalities.arrow_forwardWhat are externalities; and how the government can fix itarrow_forward
- negative externality and positive externality means what and what is an example of each.arrow_forwardExplain the difference between positive and negative externalities along with an example.arrow_forwardGive an example of a negative externality that you have witnessed or are personally aware of. Who is affected by this? What can be done to improve the situation?arrow_forward
- Explain how the effects of externalities can be remediedarrow_forwardAre negative externalities considered on a microeconomics analysis? Why or why not?arrow_forwardWhat is the principal question Coase posits when it comes to negative externalities? Who should be allowed to inflict harm on whom? Who is morally correct in any given argument about harm? How large is the harm caused?arrow_forward
- What is the main problem associated with negative externalities? a) They lead to an overallocation of resources. b) They result in inefficiency in resource allocation. c) They encourage competitive markets. d) They have no impact on market outcomes.arrow_forwardDescribe a situation where you experienced a positive or negative externality or free-riding by you or someone else. Why are these situations problematic?arrow_forwardExternality is a problem that create market failure. How the externalities can be internalized to improve market efficiency?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning