AP® Microeconomics

Free Version

Upgrade subject to access all content

Easy

Grief in Green Acres: Externalities

APMICR-OYSIR7

Barney Bottomboro lives in the town of Green Acres where he likes to save money, and the Earth, by dumping his garbage into a gigantic compost heap in his backyard. The smell from Barney’s compost permeates the entire neighborhood.

In the market for compost, the effect of Barney’s compost heap would be shown by

A

both a greater than optimal supply of and a less than optimal demand for compost.

B

a greater than optimal demand for compost.

C

a greater than optimal supply of compost.

D

both a greater than optimal supply of and a greater than optimal demand for compost.

E

a less than optimal supply of compost.