Register
The price of pie increases. Some people who purchased pie before the price increase no longer purchase pie. This is A. a negative externality. B. a positive externality for some consumers and a negative
17.9k views
2 votes
The price of pie increases. Some people who purchased pie before the price increase no longer purchase pie. This is A. a negative externality. B. a positive externality for some consumers and a negative externality for others. C. not an externality. D. a positive externality.

User MFarooqi
by
5.5k points

1 Answer

2 votes

Answer: Not an externality

Explanation: Externality refers to a situation when a decision made by one party affects the other unrelated party. That affect could be positive or adverse.

The given statement shows law of demand and not externality as the price is changed for the pies and not of any other unrelated product, thus, the demand of pie would obviously get affected.

User Bogdan Janiszewski
by
5.5k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.6m questions

7.3m answers

Other Questions

_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
Ensuring that an individual is who they claim to be is the function of _____. select one: a. confidentiality b. authorization c. availability d. authentication e. nonrepudiation
The current market price for good y is above the equilibrium price, and then the price of a subsitute good, x, increases. the demand curve for good y shifts as a result. what is the likely outcome of the
Link Copied!