Question

A new bakery opens downtown. Which circumstance would most likely be a negative externality?

Customers of the old bakery see a drop in prices.

Neighboring stores get more foot traffic.

The city government collects added tax revenue.

The old bakery down the street loses some customers.

Answer 1

@ManImStumped

Answer 2

@scapeplan

Answer 3

I'd say the last one, since it seems the most negative, since the tax revenue isn't really a bad thing, per se