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Refer to the Below Supply and Demand Graph

Question 13

Multiple Choice

Refer to the below supply and demand graph.Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective.This supply and demand graph indicates that there is (are) : Refer to the below supply and demand graph.Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective.This supply and demand graph indicates that there is (are) :   A) positive externalities to the production of this product. B) negative externalities to the production of this product. C) an overallocation of resources to the production of this product. D) a negative externality from the production of this product.


A) positive externalities to the production of this product.
B) negative externalities to the production of this product.
C) an overallocation of resources to the production of this product.
D) a negative externality from the production of this product.

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