Figure 10-6

-Refer to Figure 10-6. If 325 units of plastics are produced and consumed, then the
A)social optimum has been reached.
B)market equilibrium has been reached.
C)government must have imposed a corrective tax to guide the market to this outcome.
D)government must have offered a corrective subsidy to guide the market to this outcome.

Question

Figure 10-6
​ 
-Refer to Figure 10-6. If 325 units of plastics are produced and consumed, then the
A)social optimum has been reached. 
B)market equilibrium has been reached. 
C)government must have imposed a corrective tax to guide the market to this outcome. 
D)government must have offered a corrective subsidy to guide the market to this outcome.

Quizplus · Accepted Answer

The market equilibrium is reached when the quantity produced and consumed is at the level where supply equals demand, which is typically the case without government intervention.

Figure 10-6 ​

Figure 10-6