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A Shift from S1 to S2 Reflects the Change That Q1\mathrm { Q } _ { 1 }

Question 106

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   A shift from S<sub>1</sub> to S<sub>2</sub> reflects the change that happens when a negative externality is taken into account.A shift from D<sub>1</sub> to D<sub>2</sub> reflects the change that happens when a positive externality is taken into account. -Refer to the above figures.An external cost exists.This will lead to a(n)  A) underproduction equal to  \mathrm { Q } _ { 1 }  minus  \mathrm { Q } _ { 2 }  . B) overproduction equal to  \mathrm { Q } _ { 4 }  minus  \mathrm { Q } _ { 3 }  . C) underproduction equal to  \mathrm { Q } _ { 4 }  minus  \mathrm { Q } _ { 3 }  . D) overproduction equal to  \mathrm { Q } _ { 1 }  minus  \mathrm { Q } _ { 2 }  . A shift from S1 to S2 reflects the change that happens when a negative externality is taken into account.A shift from D1 to D2 reflects the change that happens when a positive externality is taken into account.
-Refer to the above figures.An external cost exists.This will lead to a(n)


A) underproduction equal to Q1\mathrm { Q } _ { 1 } minus
Q2\mathrm { Q } _ { 2 } .
B) overproduction equal to Q4\mathrm { Q } _ { 4 } minus
Q3\mathrm { Q } _ { 3 } .
C) underproduction equal to Q4\mathrm { Q } _ { 4 } minus
Q3\mathrm { Q } _ { 3 } .
D) overproduction equal to Q1\mathrm { Q } _ { 1 } minus
Q2\mathrm { Q } _ { 2 } .

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