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    Microeconomics
  4. Exam
    Exam 9: Externalities and Public Goods
  5. Question
    The Following Figure Shows the Market Supply and Demand of a Good
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The Following Figure Shows the Market Supply and Demand of a Good

Question 3

Question 3

Multiple Choice

The following figure shows the market supply and demand of a good whose consumption entails a $2 positive external benefit per unit.
The following figure shows the market supply and demand of a good whose consumption entails a $2 positive external benefit per unit.    -Refer to the figure above.________ units of this good will be traded in this market,at the price of ________. A)  8; $6 B)  2; $2 C)  6; $8 D)  4; $4
-Refer to the figure above.________ units of this good will be traded in this market,at the price of ________.


A) 8; $6
B) 2; $2
C) 6; $8
D) 4; $4

Correct Answer:

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