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-In the Above Figure, Market Equilibrium at Point E Yields

Question 295

Multiple Choice

-In the above figure, market equilibrium at point E yields the quantity X. The quantity is the socially optimal quantity. Point E indicates that currently there is A) a negative externality. B) a positive externality. C) a public good. D) a positive externality with subsidy.
-In the above figure, market equilibrium at point E yields the quantity X. The quantity is the socially optimal quantity. Point E indicates that currently there is -In the above figure, market equilibrium at point E yields the quantity X. The quantity is the socially optimal quantity. Point E indicates that currently there is A) a negative externality. B) a positive externality. C) a public good. D) a positive externality with subsidy.


A) a negative externality.
B) a positive externality.
C) a public good.
D) a positive externality with subsidy.

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