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26 August, 09:15

Match the pairs with answers.

Pairs

The rising price of gold causes people to buy

silver jewelry instead.

When the price of chicken increases, families

reduce their chicken intake substantially.

A new factory in a village provides livelihoods

for the villagers.

A new factory in a village causes noise pollution.

Answers

positive externality

substitution effect

negative externality

income effect

+3
Answers (1)
  1. 26 August, 10:10
    0
    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 externiality

    A new factory in a village causes noise pollution.

    negative externiality
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