Each of the following is true of a positive externality except Internalizing the externality causes the demand curve to shift up and to the right The socially optimal price is lower than the equilibrium price. The quantity after a corrective subsidy is greater than the existing market equilibrium quantity. The quantity after a corrective subsidy is less than the existing market equilibrium quantity.
Each of the following is true of a positive externality except Internalizing the externality causes the demand curve to shift up and to the right The socially optimal price is lower than the equilibrium price. The quantity after a corrective subsidy is greater than the existing market equilibrium quantity. The quantity after a corrective subsidy is less than the existing market equilibrium quantity.
Chapter14: Environmental Economics
Section: Chapter Questions
Problem 11SQ
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