Use the following supply and demand graph for product X to answer the question below. 
If there are positive externalities from the consumption of product X, then the socially optimal demand curve would be
A. an upward-sloping line.
B. to the left of line D on the graph.
C. at the position of line D on the graph.
D. to the right of line D on the graph.
Answer: D
You might also like to view...
A permanent decrease in taxes leads to
A) a small increase in current consumption. B) a large increase in current consumption. C) a small decrease in future consumption. D) a large decrease in future consumption.
An increase in the price of a good is shown by a:
A. rightward shift of the demand curve. B. leftward shift of the demand curve. C. movement up and to the left along the demand curve. D. movement down and to the right along the demand curve.
Refer to the table above. At what rate did the country grow between 2005 and 2006?
A) 15.95% B) 12.45% C) 18% D) 16.33%
In order to analyze the factors that determine the quantity of real GDP demanded, in the aggregate expenditure model we assume that
A) real GDP does not change. B) the unemployment level is fixed. C) the inflation rate is assumed to equal the natural unemployment rate. D) the natural rate of unemployment is fixed. E) the price level is fixed.