Match the scenarios with the economic concepts they illiterate. Positive externality, substitution effect, negative externality, and income effect
1.the rising price of gold causes people to buy silver jewelry instead
2.when the price of chicken increases, families reduce their chicken intake substantially
3.a new factory in a village provides livelihoods for the villagers
4.a new factory in a village causes noise pollution

Respuesta :

1. Substitution effect.

2. Income effect

3. Positive externality

4. Negative externality

Answer:

.the rising price of gold causes people to buy silver jewelry instead : Substitution effect.

when the price of chicken increases, families reduce their chicken intake substantially:Income effect

a new factory in a village provides livelihoods for the villagers: Positive externality

a new factory in a village causes noise pollution: Negative externality

Explanation:

ACCESS MORE
ACCESS MORE
ACCESS MORE
ACCESS MORE