Multiple Choice
When consuming a good creates positive externalities,_____
A) the private demand for the good increases.
B) the private demand for the good decreases.
C) the private demand curve overstates the marginal social benefit of the good.
D) the private demand curve understates the marginal social benefit of the good.
E) the equilibrium quantity traded of the good increases without government intervention.
Correct Answer:

Verified
Correct Answer:
Verified
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