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EXTERNALITIES - Coggle Diagram

- - - - effective, increases supply by decreasing MSC
    - - effective, increases MPB
    - - depends, increases MPB
    - - lower VAT on books,
        
        effective
    - - effective
  - - - effective
    - - effective
- - - - Rationing
        
        effective
        
        drawbacks - less workers needed - black market
      - Age limits -
        
        effective
      - Time limits
        
        mostly effective , but people may buy more in advance
      - MPB
    - - Indirect tax
        
        Depends on PED of the good
        
        Drawbacks - possible reduction in employment - less workers needed - also refers to price floor , black market
        
        MSC shift
      - Minimum Price
        
        Depends on PED - might be ineffective
        
        movement along the MPB and MSC
    - - Negative adv. campaigns
        
        Rather ineffective
      - Positive adv. campaigns
        
        effect is uncertain, but more effective than negative
      - MPB shift