Question

correcting positive externalities will result in a new, corrected, market demand curve that is to the
a. right of the initial curve. this will increase the output level.
b. left of the initial curve. this will increase the output level.
c. right of the initial curve. this will decrease the output level.
d. left of the initial curve. this will decrease the output level.

Explanation:

Positive externalities mean that the social benefit is greater than the private benefit. When correcting positive externalities, more of the good is produced and consumed. A right - ward shift of the demand curve indicates an increase in demand and thus an increase in the output level.

Answer:

A. right of the initial curve. This will increase the output level