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If a Good That Generates Negative Externalities Were Priced to Take

Question 60

Multiple Choice

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


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

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