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When someone buys a product and, consuming it gives forth huge External Benefit to society, which of the following statement/s do you agree with? Select
When someone buys a product and, consuming it gives forth huge External Benefit to society, which of the following statement/s do you agree with? Select one: a. Government has an important role to play and that is to encourage and promote even more demand and consumption of that good. Such action by the Government will shift the Demand curve to the RIGHT. As a result, MORE of that good will be produced and consumed, and more resources are allocated to produce that good. b. Government has an important role to play and that is to discourage the demand and consumption of that good. Such action by the Government will shift the Demand curve to the LEFT. As a result, LESS of that good will be produced and consumed, and fewer resources are allocated to produce that good
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