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When the Consumption of a Good Generates Positive Externalities,_____

Question 65

Multiple Choice

When the consumption of a good generates positive externalities,_____


A) the private demand curve for the good shifts rightward.
B) the private demand curve for the good shifts leftward.
C) the private demand curve for the good lies below the marginal social benefit curve.
D) the private demand curve for the good lies above the marginal social benefit curve.
E) the equilibrium quantity of the good determined by the free private market is too high.

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