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

Name: Internalizing a positive externality will cause the demand curve to A)shift up. B)shift down. C)become more elastic. D)remain unchanged.
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Question

Quizplus · Accepted Answer

Internalizing a positive externality increases the perceived benefit of the good, leading to an increase in demand, which shifts the demand curve up.

Internalizing a Positive Externality Will Cause the Demand Curve to