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When There Are Positive Externalities Associated with the Consumption of a Good

Question 227

Multiple Choice

When there are positive externalities associated with the consumption of a good, we can expect the market:


A) demand curve to lie above the social demand curve.
B) demand curve to lie below the social demand curve.
C) supply curve to lie above the social supply curve.
D) supply curve to lie below the social supply curve.
E) demand curve to lie below the social supply curve.

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