If a negative externality were present in a market,the social demand curve would be:
A)above the private demand curve.
B)below the private demand curve.
C)the same as the private demand curve.
D)Cannot say without more information.

Question

Quizplus · Accepted Answer

The presence of a negative externality means that the cost to society is greater than the private cost, resulting in a divergence of the social and private cost curves. Thus, the social demand curve would be below the private demand curve.

If a Negative Externality Were Present in a Market,the Social