If penalties are imposed on the sellers of illegal goods or services, then the equilibrium price _______ And the equilibrium quantity _______.

Question

Quizplus · Accepted Answer

Penalties on sellers of illegal goods or services increase the cost of doing business, leading to a decrease in supply. This results in a higher equilibrium price due to scarcity and a lower equilibrium quantity as less of the good or service is available or sold.

If Penalties Are Imposed on the Sellers of Illegal Goods