After accounting for externalities with a social cost curve, the new equilibrium would be such that equilibrium price is
A. higher than before and equilibrium quantity is lower than before.
B. higher than before and equilibrium quantity is higher than before.
C. lower than before and equilibrium quantity is higher than before.
D. lower than before and equilibrium quantity is lower than before.
Answer: A
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Use the following table to answer the next question.YearUnemployment Rate (%)Inflation Rate (%)14.03.024.52.535.02.045.53.056.04.5Consider years 1, 2, and 3. Based on this data, the Phillips curve is ________.
A. upward sloping B. vertical C. of indeterminate slope D. downward sloping
There has been catch-up among ________, but there has not been catch-up among ________
A) developing countries such as Niger; industrialized countries such as Japan B) developing countries such as Niger; all countries of the world C) industrialized countries such as Japan; all countries of the world D) all countries of the world together; industrialized countries such as Japan
Under the Cambridge cash balance approach, money demand is determined by
A) nominal income. B) real income. C) the saving rate. D) velocity.
In the production of goods and services, trade-offs exist because
A) not all production is efficient. B) society has only a limited amount of productive resources. C) buyers and sellers often must negotiate prices. D) human wants and needs are limited at a particular point in time.