Social Cost Supply {Private Cost) Demand (Private Value) a & 0 O Quentity 4. Refer to the figure. What is this market experiencing? (1 mark) a. government intervention b, a positive externality C. a negative externality d. a technology spillover 5. What does the Coase theorem suggest about private solutions to the externality problem? (1 mark) a. They will always allocate resources efficiently if private parties can bargain without cost. b. They are effective under all conditions. c. They are only efficient when there are negative externalities. d. They may not be possible because of the distribution of property rights