Figure 10-9
-Refer to Figure 10-9. Which graph represents a market with no externality?
A)Panel (a)
B)Panel (b)
C)Panel (c)
D)None of the above is correct.

Question

Figure 10-9   
-Refer to Figure 10-9. Which graph represents a market with no externality?
A)Panel (a) 
B)Panel (b) 
C)Panel (c) 
D)None of the above is correct.

Quizplus · Accepted Answer

Panel (a) represents a market with no externality, as it typically shows the equilibrium where the supply and demand curves intersect without any external costs or benefits affecting the market outcome.