Suppose the demand for an industrial product is given by P equals 300 minus 2 Q , and the supply is given by P equals Q . Suppose that the pollution due to the production of this good imposes a per unit cost of c equals 3 on society. What type of externality is this, and what curve represents this externality being accounted for (social cost or social demand curve)? A. This is a positive production externality. The social supply curve would be P equals 3 plus Q. B. This is a negative consumption externality. The social demand curve would be P equals 97 minus Q. C. This is a negative production externality. The social supply curve would be P equals 3 plus Q. D. This is a positive consumption externality. The social demand curve would be P equals 103 minus Q.
Suppose the
A. This is a positive production externality. The social supply curve would be P equals 3 plus Q.
B. This is a negative consumption externality. The social demand curve would be P equals 97 minus Q.
C. This is a negative production externality. The social supply curve would be P equals 3 plus Q.
D. This is a positive consumption externality. The social demand curve would be P equals 103 minus Q.
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