Economics (AS & A Level) · Oct / Nov 2022 · Paper 31 · Question 2
9708Private costs and benefits, externalities and social costs and benefits
The diagram shows the costs and benefits of producing a good. The good has negative externalities in production and positive externalities in consumption. The free market equilibrium is at point X. What is the new equilibrium point when the externalities are taken into consideration?
- AA
- BB
- CC
- DD
As printed in the paper
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Correct answer: B. B
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