D Question 25 Refer to the accompanying graph Price G 4 E Q F 8182 D₂ D₁ Quantity The market is currently in equilibrium at Point E. Suppose this product has a positive externality. If government decides to subsidize sellers to internalize the positive externality, the new equilibrium will be at Point OB OF oc 00 OE

D Question 25 Refer to the accompanying graph Price G 4 E Q F 8182 D₂ D₁ Quantity The market is currently in equilibrium at Point E. Suppose this product has a positive externality. If government decides to subsidize sellers to internalize the positive externality, the new equilibrium will be at Point OB OF oc 00 OE

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter17: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section: Chapter Questions

Problem 8QP

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