select the correct answer. which statement defines externality? a. it is a change in demand brought about by…

select the correct answer. which statement defines externality? a. it is a change in demand brought about by factors other than price. b. it is the external factors that cause a rise in the supply of goods or services. c. it is the external factors that cause a decrease in the supply of goods or services. d. it is the impact of production and consumption on unrelated third parties.

select the correct answer. which statement defines externality? a. it is a change in demand brought about by factors other than price. b. it is the external factors that cause a rise in the supply of goods or services. c. it is the external factors that cause a decrease in the supply of goods or services. d. it is the impact of production and consumption on unrelated third parties.

Answer

Brief Explanations:

Externality refers to the spill - over effects of production or consumption activities on third parties who are not directly involved in those activities. It can be positive (beneficial) or negative (harmful). Options A, B, and C focus on demand and supply factors rather than the impact on third parties.

Answer:

D. It is the impact of production and consumption on unrelated third parties.