D) Question 22 An example of a negative externality in consumption not productio
ID: 1162392 • Letter: D
Question
D) Question 22 An example of a negative externality in consumption not production (šimilar to students texting in class)is pts O A cigar plant releasing waste in a river. 0 A large cattle farm creating air pollution. 0 A person driving a vehicle that does not pass inspection and pollutes the air. 0 You hnishing college and contributing to society. D Question 23 1pts Diet Coke and Pepsi are somewhat similar. Pepsi decides to market its product as a more healthy choice than Diet Coke. In this example, the cross-price elasticity should become? O More positive 0 Less positive (move closer to zero. 0 Less negative (move closer to zero). O More negative.Explanation / Answer
22.
C
It is the consumption of driving facility, but not maintaining the car, that causes the negative externality. Here, the product is not produced, rather consumed.
23.
A
The cross price elasticity will be positive. But, with projecting Pepsi as healthier product, will make consumers opt more for the Pepsi when there is a slight increase in price.
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