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The Graph Shown Displays a Market with an Externality

Question 56

Multiple Choice

The graph shown displays a market with an externality. The graph shown displays a market with an externality. Which of the following statements is true?The market quantity is 7 units.Total surplus could be increased if the government imposed a tax on this good.This shows a positive consumption externality. A) I only B) II and III only C) I and II only D) III only Which of the following statements is true?The market quantity is 7 units.Total surplus could be increased if the government imposed a tax on this good.This shows a positive consumption externality.


A) I only
B) II and III only
C) I and II only
D) III only

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