market for Booming Berries contains a? a) Negative Externality b) Positive externality   How can I tell distinguish if it contains a positive or negative externality with the given information?

Q: An externality arises when a firm or person engages in an activity that affects the wellbeing of a…

A: * ANSWER :-

Q: 10. In 2012, the Nigerian government removed a subsidy on fuel. One critic of the removal of the…

A: A subsidy is a financial help or backing given by a government or association to explicit…

Q: re prices change people's behavior in efficient manners?

A: Consumer behavior: It is a process to study the behavior of a consumer or an individual which shows…

Q: Hook Look at the tables below. Person Bob Barb Bill Bart Brent Betty Maximum Price Willing to Pay…

A: The utmost price a buyer will pay for a product is known as their maximum willingness to pay.…

Q: Refer to the graph above. Which statement is true? O The market equilibrium is point a and the…

A: The link between the amount of a product provided and its price, while maintaining other variables…

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A: a) Producer-producer rivalry refers to the competition that exists between different producers or…

Q: The term external to the exchange. a) private costs b) externality c) market failure d) social costs…

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Q: Was demand for its products more elastic or inelastic and why? Were consumers well informed of the…

A: ▪︎The law of demand states that as a good or service's price increases, demand for that good or…

Q: Problem 2 You are an advisor to the Indian government. Until now, government policy in India has…

A: International trade are cross border exchange of goods and services with another countries .  Many…

Q: How is food justice related to environmental justice?

A: Food justice encompasses the pursuit of inclusive food systems that prioritize fairness, respect and…

Q: Consider the market for CD players, illustrated in the figure to the right. Suppose there are…

A: There is a network externality in the market for CD players.  hence, the number of CD players…

Q: The chart above shows the market for polio vaccine in Pakistan. This vaccine provides external…

A: a. If there is a competitive market and no government intervention, then the amount will be…

Q: What is the term used to describe the situation where resources are allocated in a way that…

A: Market equilibrium refers to the point in a market where the quantity of a good or service supplied…

Q: Offer an example of a market where you consider the real-world outcome to be unacceptable. Why is…

A: Usually, the market outcomes are considered efficient and socially optimal ones. The outcomes occur…

Q: Price OA+B+C OB+C Refer to the figure. When the price is P₁, consumer surplus is OC A 9₂ Question 5…

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Q: What does the law of supply state? O Producers will produce or supply more of a good as the price of…

A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…

Q: (1) Explain the Determinants of Demand and Supply integrating outside source examples.

A: Demand is the total demand of goods and services demanded by the people in the economy. Demand curve…

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A: Marginal Benefits are referred to as the Maximum amount that a consumer would pay for an additional…

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Q: Define negative and positive externalities and their effect on resource allocation.

A: Externalities are defined as the resource allocation that would be based on the market failure that…

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A: a) In a market economy, goods are rationed through the price mechanism, where prices adjust based on…

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Market Failure Analysis

To understand Market failure, we need to first understand welfare economics. An Italian economist, Vilfredo Pareto stated that allocation of resources in an efficient manner such that an economic change, which harms no one and makes someone better off, indicates an increase in social welfare. It is also called Pareto Optimality, where resources cannot further be reallocated without harming one. This does not apply to those economic changes, which harm some and benefit others. social welfare increases if the utility of any of its members' increases and none decrease in the economy.