-In the above figure, CBL is the cost of breaking the law. If the good in the figure is made illegal and penalties are imposed on both buyers and sellers, then its price per unit
A) will be higher than if it was not illegal.
B) will be lower than if it was not illegal.
C) will be the same as when it was not illegal.
D) cannot be compared with its price when it was legal.

Question

-In the above figure, CBL is the cost of breaking the law. If the good in the figure is made illegal and penalties are imposed on both buyers and sellers, then its price per unit
A) will be higher than if it was not illegal. 
B) will be lower than if it was not illegal. 
C) will be the same as when it was not illegal. 
D) cannot be compared with its price when it was legal.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, CBL is the cost of breaking the law. If the good in the figure is made illegal and penalties are imposed on both buyers and sellers, then its price per unit
A) will be higher than if it was not illegal. 
B) will be lower than if it was not illegal. 
C) will be the same as when it was not illegal. 
D) cannot be compared with its price when it was legal.

-In the Above Figure, CBL Is the Cost of Breaking