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5: Question Content AreaPositive Externalities Figure: A graph shows an upward sloping supply curve and two parallel downward sloping demand curves plotting the relationship between
5: Question Content AreaPositive Externalities Figure: A graph shows an upward sloping supply curve and two parallel downward sloping demand curves plotting the relationship between Quantity on the horizontal axis ranging from 0 to 17 with increments of 1 and Price on the vertical axis ranging from 0 to 40 with increments of 4. The supply curve starts near the origin, passes through the points (6, 12), (10, 20), and ends at the top right. The first demand curve labeled Social value starts near the point 40 on the vertical axis, passes through the points (6, 28), intersects the supply curve at the point (10, 20), and ends at the bottom right. The second demand curve labeled Demand starts near the point between 20 and 24 on the vertical axis, intersects the supply curve at the point (6, 12), and ends at the bottom right near the horizontal axis to the left of the first demand curve. Horizontal and vertical drop lines extend from the points (6, 28), (6, 12), and the intersection point (10, 20). Refer to the figure. This market _______. a. has no externalities b. has positive externalities c. has no market equilibrium d. has negative externalities
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