Complete the externality story

Exercise and reference answers

Missing parts

1. Answer

   externality

   Choices

   1. externality
   2. elasticity
   3. equilibrium

2. Answer

   failure

   Choices

   1. failure
   2. success
   3. surplus

3. Answer

   higher

   Choices

   1. higher
   2. lower
   3. unchanged

Complete the statement

An effect on a third party is an {0}; because markets miss it, this is a market {1}; charging for it makes the price {2}.

Instructions

Tap a word for each blank to complete the sentence.

Explanation