Refer to the graph shown. Assuming a $0.10-per-gallon marginal cost external to the trade that is associated with gasoline, the market price of gasoline necessary to induce consumers to purchase the efficient quantity each year is:
A) $0.95.
B) $1.00.
C) $1.05.
D) $1.10.

Question

Refer to the graph shown. Assuming a $0.10-per-gallon marginal cost external to the trade that is associated with gasoline, the market price of gasoline necessary to induce consumers to purchase the efficient quantity each year is: 
A) $0.95. 
B) $1.00. 
C) $1.05. 
D) $1.10.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. Assuming a $0.10-per-gallon marginal cost external to the trade that is associated with gasoline, the market price of gasoline necessary to induce consumers to purchase the efficient quantity each year is: 
A) $0.95. 
B) $1.00. 
C) $1.05. 
D) $1.10.

Refer to the Graph Shown