If education produces positive externalities and the government does not intervene in the market, we would expect Select one: a. the equilibrium price to be higher than the optimal price. b. the equilibrium quantity to be lower than the optimal level. c. the equilibrium quantity to be higher than the optimal level. d. both a and b are correct Internalizing a positive externality will cause the demand curve to Select one: a. shift to the right. b. shift to the left. c. become more elastic. d. remain unchanged. John lives in an apartment building and gets a $500 benefit from playing his stereo, Mary, who lives next door to John and often loses sleep due to the loud music coming from John's stereo, bears a $700 cost from the noise, Mary would like to offer John some money to turn down the volume on his stereo. If Mary had to hire a lawyer to draw up the contract, what is the maximum amount she could pay to the lawyer to ensure that both John and Mary would benefit from the agreement? Select one: a. An amount less than $200. b. An amount between $200 and $500. c. An amount between $500 and $700 d. Any amount could result in both parties benefitting from the agreement.