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If the Demand Curve Fails to Capture All of the Benefits

Question 139

Multiple Choice

If the demand curve fails to capture all of the benefits of consumption, then the:


A) equilibrium price will be efficient but the equilibrium quantity will be inefficiently large.
B) equilibrium price will be inefficiently low.
C) government needs to impose regulations that require more consumption.
D) equilibrium price will be inefficiently high.

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