a. Using a supply and demand diagram, demonstrate how a positive externality leads to market inefficiency. b. How might

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a. Using a supply and demand diagram, demonstrate how a positive externality leads to market inefficiency. b. How might

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A Using A Supply And Demand Diagram Demonstrate How A Positive Externality Leads To Market Inefficiency B How Might 1
A Using A Supply And Demand Diagram Demonstrate How A Positive Externality Leads To Market Inefficiency B How Might 1 (23.03 KiB) Viewed 10 times
a. Using a supply and demand diagram, demonstrate how a positive externality leads to market inefficiency. b. How might the government help to eliminate this inefficiency? Describe one market-based policy that can eliminate the inefficiency (be specific). c. Why are corrective taxes or subsidies preferred to regulatory policies as methods remedy externalities?
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