Economics 9708 · AS & A Level · 7.4

7.4 — practice question

When a good is consumed, external benefits are created. Its market equilibrium is E. Which diagram illustrates the adjustment in equilibrium (E to E1) needed to show the good’s true value to society?

  • A[IMAGE:9708_s11_qp_12_p6_diagram_3]
  • B[IMAGE:9708_s11_qp_12_p6_diagram_5]
  • C[IMAGE:9708_s11_qp_12_p6_diagram_2]
  • D(diagram D)

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