Figure 8-4
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-4.The equilibrium price before the tax is imposed is

Question

Figure 8-4
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-4.The equilibrium price before the tax is imposed is

Quizplus · Accepted Answer

The equilibrium price is where the supply and demand curves intersect, which is at $16 in this case. The equilibrium quantity is 100. This is the quantity that both buyers and sellers are willing to exchange at the given price.

Figure 8-4 the Vertical Distance Between Points a and B Represents a Represents