Exhibit 16-5
-Exhibit 16-5 represents the market for leaf tobacco. In the absence of any government intervention what would the market price for leaf tobacco be?

Question

Exhibit 16-5 
-Exhibit 16-5 represents the market for leaf tobacco. In the absence of any government intervention what would the market price for leaf tobacco be?

Quizplus · Accepted Answer

The market price for leaf tobacco would be where the supply and demand curves intersect, which is at a price of $1.00 per pound. At this price, the quantity demanded is 60 million pounds and the quantity supplied is also 60 million pounds, resulting in a market equilibrium. Neither buyers nor sellers have an incentive to change their behavior at this price.

Exhibit 16-5 -Exhibit 16-5 Represents the Market for Leaf Tobacco. in the Tobacco