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A Shift from S1 to S2 Reflects the Change That P1P _ { 1 }

Question 149

Multiple Choice

   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.Externalities exist in both panels.After correcting for the externalities the prices should be A)   P _ { 1 }  and  \mathrm { P } _ { 3 }  . B)   P _ { 1 }  and  \mathrm { P } _ { 4 }  . C)   P _ { 2 }  and  \mathrm { P } _ { 4 }  . D)   P _ { 2 }  and  \mathrm { P } _ { 3 }  . 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.Externalities exist in both panels.After correcting for the externalities the prices should be


A) P1P _ { 1 } and
P3\mathrm { P } _ { 3 } .
B) P1P _ { 1 } and
P4\mathrm { P } _ { 4 } .
C) P2P _ { 2 } and
P4\mathrm { P } _ { 4 } .
D) P2P _ { 2 } and
P3\mathrm { P } _ { 3 } .

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