When a good is consumed, external benefits are created. The market equilibrium is E. Which diagram shows the shift in equilibrium (E to E1) needed to reflect the good’s true value to society?
- A[IMAGE:9708_s11_qp_13_p6_diagram_3]
- B[IMAGE:9708_s11_qp_13_p6_diagram_5]
- C[IMAGE:9708_s11_qp_13_p6_diagram_2]
- DOption D (diagram with demand shifting D1 shown differently)