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If a Good That Generates Negative Externalities Was Priced to Take

Question 41

Multiple Choice

If a good that generates negative externalities was priced to take into account these negative externalities, then its:


A) price would decrease and its output would increase.
B) output would increase but its price would remain constant.
C) price would increase and its output would decrease.
D) price would increase but its output would remain constant.

Correct Answer:

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