If a competitive market is characterized by a negative externality, then which of the following statements is true?

Externalities If a competitive market is characterized by a negative externality, then which of the following statements is true? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Social surplus is greater than market surplus. b Social surplus is less than market surplus. C Social surplus is equal to market surplus. d Social surplus may be greater than or less than market surplus, depending on the size of the externality. Unanswered Save producer surplus Suppose that the price of a good increases. The increase in produce surplus will be: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Larger If demand is relatively elastic than if demand is relatively inelastic. b Smaller if demand is relatively elastic than if demand is relatively inelastic. C Smaller if supply is relatively elastic than if supply is relatively inelastic. d Larger if supply is relatively elastic than if supply is relatively inelastic. Unanswered Save