Which of the following best illustrates the impact of negative externalities in consumption, where the private costs do not reflect the true social costs incurred by society?

Negative externalities in consumption occur when the actions of individuals or businesses have harmful effects on others that are not reflected in the costs they pay. For example, if someone decides to smoke in public, they enjoy the pleasure of smoking, but they also expose others to secondhand smoke, which can harm their health. The smoker only pays for their cigarettes, not for the medical costs or health issues that result from their smoking affecting others. This means the true social cost of smoking is higher than the private cost paid by the smoker, leading to negative impacts on society. Therefore, negative externalities show that sometimes people's choices can hurt others, and the costs of those choices are not fully accounted for.