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Graph 5 (b) Supply (Private cost) Price Price Supply (Private cost) Demand (Priv

ID: 1157107 • Letter: G

Question

Graph 5 (b) Supply (Private cost) Price Price Supply (Private cost) Demand (Private value) Social value Demand (Private value) Social value Quantity? Quantity (d) Social cost Supply (Private cost Price Supply Private cost Price Social cost Demand (Private value) Demand Private value) Quantity Quantity Refer to Graph 5. Which set of panels depict a situation most likely to benefit from a igovian k? Al panels (a) and (c) B. panels (b) and (d) C. panels (b) and (c) D. panels (a) and (d) ls de a situ in likely to benefitfr mano a ?

Explanation / Answer

The correct answer is C. This causes negative externalities. The correct answer is thus C.