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Economics Help for High School & IB on Instagram: "Negative externalities of consumption occur when consuming a good or service imposes costs on third parties who are not directly involved in the transaction. These external costs are not reflected in the market price of the good, leading to overconsumption and market failure. Examples: 1. Cigarettes: Smoking not only harms the smoker’s health but also exposes others to secondhand smoke, increasing public healthcare costs. 2. Alcohol: Excessive d
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