Various new cars are sold with sensors that automatically turn on ...

[geodog55]

Various new cars are sold with sensors that automatically turn on the headlights at night or in low light conditions. Would these sensors create a positive externality or a negative externality? How?

Question 2

If opening up international trade resulted in the U.S. becoming a wheat exporter, relative to the prior no-trade situation, the U.S. domestic price of wheat:
 a. would rise, but domestic output would fall.
 b. would decline, but domestic output would rise.
  c. would decline, as would domestic output.
 d. would rise, as would domestic output.

[aprice35067]

Answer to Question 1

Cars with these new sensors would likely create positive externalities. Other drivers would be safer because those driving with these sensors would always have their headlights on when driving at night, in the rain, etc.

Answer to Question 2

d