If the external benefit of an activity is added to the private benefit,then the
A) demand curve shifts left.
B) quantity demanded rises.
C) supply curve shifts right.
D) demand curve shifts right.
E) quantity demanded falls.

Question

Quizplus · Accepted Answer

When the external benefit of an activity is added to the private benefit, the total benefit increases. This means that consumers are willing to pay more for the product or service, leading to a rightward shift of the demand curve. Therefore, the quantity demanded will increase as well.

If the External Benefit of an Activity Is Added to the Private