Optimal Equilibrium With Positive Externalities
Equilibrium in economics is where the supply meets the quantity demanded to set a market price. What is the optimal equilibrium point with the external influence of positive externality?
A
The equilibrium that includes positive externality will be found on the supply line where the lowest price is sought by the vendors.
B
This is the point on the price line where quantity demanded meets the lowest price.
C
This is the point where quantity demanded and supply include the marginal benefit.
D
Positive externality does not have an effect on equilibrium so it will remain at the same point.