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When There Are Positive Externalities Associated with the Consumption of a Good

Question 18

Multiple Choice

When there are positive externalities associated with the consumption of a good, we can expect:


A) the private demand curve to lie above the social demand curve.
B) the private supply curve to lie below the social supply curve.
C) the private supply curve to lie above the social supply curve.
D) the private demand curve to lie below the social demand curve.

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