Internalizing a positive externality will cause the demand curve to
A)shift to the right.
B)shift to the left.
C)become more elastic.
D)remain unchanged.

Question

Quizplus · Accepted Answer

Internalizing a positive externality means acknowledging the additional benefits that are not reflected in the market price. This will encourage consumers to demand more of the product, leading to a shift in the demand curve to the right.

Internalizing a Positive Externality Will Cause the Demand Curve to