Which statement defines externality?

It is a change in demand brought about by factors other than price.

It is the external factors that cause a rise in the supply of goods or services.

It is the external factors that cause a decrease in the supply of goods or services.

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

Question

Conway

2 September, 20:38

+1

Answers (1)

Know the Answer?

Jaquan Baldwin · Answer 1

Externalities are defined as the positive or negative consequences of economic activities on unrelated third parties.