Negative/Positive Externalities

Increased fish population

More sunlight

Cleaner water

A lot of fish dying

By ignoring them

By closing the hotel

By installing filters in the factory

By announcing a new law for waste management

The smell of freshly roasted coffee

The paper factory's pollution

The hotel blocking sunlight

Trash on the beach

Negative externalities

Tragedy of the commons

Private costs

Supply and demand equilibrium

Price increases, demand decreases

Price decreases, demand increases

Price and demand both increase

Price and demand both decrease

When everyone takes as much as they can from a resource that belongs to no one

When fishermen can't sell fish

When a hotel blocks sunlight from a lake

When a paper factory pollutes a river

Ignoring the problem

Closing factories, banning fishing, and stopping hotel construction

Only through government intervention

Public awareness, assigning property rights, internalization, regulation and fines

It increases the number of public protests

It makes no difference in addressing externalities

It allows for direct regulation of resources

It encourages responsible use and management of resources

It shifts the supply curve to the left

It shifts the supply curve to the right

It does not affect the supply curve

It makes the supply curve steeper

They penalize producers for negative externalities

They have no effect on market failures

They encourage consumption of goods with positive externalities

They increase the cost of goods with negative externalities