A shift from S 1 to S 2 reflects the change that happens when a negative externality is taken into account.A shift from D 1 to D 2 reflects the change that happens when a positive externality is taken into account.
-Refer to the above figures.An external cost exists.This will lead to a(n)
A)underproduction equal to $\mathrm { Q } _ { 1 }$ minus $\mathrm { Q } _ { 2 }$ .
B)overproduction equal to $\mathrm { Q } _ { 4 }$ minus $\mathrm { Q } _ { 3 }$ .
C)underproduction equal to $\mathrm { Q } _ { 4 }$ minus $\mathrm { Q } _ { 3 }$ .
D)overproduction equal to $\mathrm { Q } _ { 1 }$ minus $\mathrm { Q } _ { 2 }$ .

Question

A shift from S 1 to S 2 reflects the change that happens when a negative externality is taken into account.A shift from D 1 to D 2 reflects the change that happens when a positive externality is taken into account.
-Refer to the above figures.An external cost exists.This will lead to a(n)
A)underproduction equal to $\mathrm { Q } _ { 1 }$ minus $\mathrm { Q } _ { 2 }$ . 
B)overproduction equal to $\mathrm { Q } _ { 4 }$ minus $\mathrm { Q } _ { 3 }$ . 
C)underproduction equal to $\mathrm { Q } _ { 4 }$ minus $\mathrm { Q } _ { 3 }$ . 
D)overproduction equal to $\mathrm { Q } _ { 1 }$ minus $\mathrm { Q } _ { 2 }$ .

Quizplus · Accepted Answer

The Answer of  A shift from S 1 to S 2 reflects the change that happens when a negative externality is taken into account.A shift from D 1 to D 2 reflects the change that happens when a positive externality is taken into account.
-Refer to the above figures.An external cost exists.This will lead to a(n)
A)underproduction equal to $\mathrm { Q } _ { 1 }$ minus $\mathrm { Q } _ { 2 }$ . 
B)overproduction equal to $\mathrm { Q } _ { 4 }$ minus $\mathrm { Q } _ { 3 }$ . 
C)underproduction equal to $\mathrm { Q } _ { 4 }$ minus $\mathrm { Q } _ { 3 }$ . 
D)overproduction equal to $\mathrm { Q } _ { 1 }$ minus $\mathrm { Q } _ { 2 }$ .

A Shift from S1 to S2 Reflects the Change That Q1\mathrm { Q } _ { 1 }Q1​

A Shift from S₁ to S₂ Reflects the Change That $\mathrm { Q } _ { 1 }$