Question

In private equilibrium, a positive production externality will lead to __________; a negative consumption externality will lead to ___________.

Answer 1

the answer is overproduction; "too little" consumption
Positive production externality is the factors that positively affect the process of production (such as new government regulations), which will make companies will able to produce more than they used to. Negative consumption externality refers to the factors that make consumers unwilling to consume a certain product (such as new studies) and will definitely reduce the amount of consumption