Question

Which of the following is an example of a positive externality that would result from converting the inner part of a city to a
pedestrian only area?

The decrease in population in the city

The increase in the commute time for people who work in the area

A decrease in business in the area

The reduction in gas prices for people who work in the area

Answer 1

The reduction in gas prices is an example.

Whenever a production of good or service benefits the third party who is not directly involved in a market transaction, it is said that positive externality exists in the scenario.

• In another word, Positive externalities does exist when a third party benefits an action with involvement with direct transaction..

• A typical example of where positive externality exist is when there is reduction in gas prices for people who work in the area. A third party who need fuel will benefit here because there were few need for fuel in pedestrian area, leading to crash in fuel price.

Learn more about Positive externalities here

brainly.com/question/18400181

Answer 2

Answer:

the decrease in pollution in the city

Explanation:

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