-The figure above shows the market for a good with an external benefit. If the market is competitive and the government takes no action, the equilibrium quantity is ________ units and the equilibrium price is ________ per unit.
A) 10; $100
B) 8; $150
C) 10; $150
D) 10; $250
E) 8; $300

Question

-The figure above shows the market for a good with an external benefit. If the market is competitive and the government takes no action, the equilibrium quantity is ________ units and the equilibrium price is ________ per unit.
A) 10; $100 
B) 8; $150 
C) 10; $150 
D) 10; $250 
E) 8; $300

Quizplus · Accepted Answer

In a competitive market without government intervention, the equilibrium is found where the supply and demand curves intersect. The given options suggest that the equilibrium quantity and price are determined by these intersecting points. Option B correctly identifies the equilibrium quantity as 8 units and the equilibrium price as $150 per unit, which is typical in scenarios where the demand and supply curves are considered without accounting for external benefits.

-The Figure Above Shows the Market for a Good with an External