Positive Externality: Definition & Examples


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question 1 of 3

Which answer best describes the effect of positive externality to the demand curve?

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1. Equilibrium in economics is where the supply meets the quantity demanded to set a market price. What is the optimal equilibrium point with the external influence of positive externality?

2. What is one good way supply could reach the quantity demanded with the positive external benefit?

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About This Quiz & Worksheet

Use this quiz and worksheet to find out what you know about positive externalities. The quiz will test you on topics like describing the effect of positive externality to the demand curve and optimal equilibrium.

Quiz & Worksheet Goals

Use these study assessments to:

  • Identify a good way supply could reach a demand with the positive external benefit
  • Recognize way(s) a positive externality might be subsidized by a government
  • Find optimal equilibrium in a given scenario

Skills Practiced

The following skills will be practiced:

  • Critical thinking - apply relevant concepts to examine information about supply reaching demand with the positive external benefit in a different light
  • Interpreting information - verify that you can review information regarding the optimum equilibrium point and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about positive externalities

Additional Learning

Review the lesson called Positive Externality: Definition & Examples to explore this subject further. The lesson covers the following study objectives:

  • Define quantity demanded
  • Understand supply
  • Recognize real life examples