Cool Economics Examples-Externalities

Mr. Clifford from ACDC Econ introduces the concept of externalities using Axe body spray as an example. He explains that externalities occur when a transaction affects someone other than the buyer or seller. Positive externalities provide benefits to others, while negative externalities impose costs. A commercial is used to illustrate these concepts, showing how a person benefits from Axe without purchasing it, and how others might experience costs. The video aims to clarify these economic concepts with practical examples.

What is the significance of the phrase 'spillover benefit' in the context of externalities?

What happens if someone dislikes the smell of Axe according to the text?