Exhibit 16-5 Exhibit 16-5 represents the market for leaf tobacco.In the absence of any government intervention how much will buyers spend on tobacco?

Name: Exhibit 16-5 Exhibit 16-5 represents the market for leaf tobacco.In the absence of any government intervention how much will buyers spend on tobacco?
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Question

Exhibit 16-5  Exhibit 16-5 represents the market for leaf tobacco.In the absence of any government intervention how much will buyers spend on tobacco?

Quizplus · Accepted Answer

The equilibrium price of leaf tobacco is $4 per pound and the equilibrium quantity is 1,000 pounds. At this price, buyers will spend $4,000 on tobacco ($4 per pound x 1,000 pounds).

Exhibit 16-5 Exhibit 16-5 Represents the Market for Leaf