-Using the above figure, CBL is the cost of breaking the law. What is the equilibrium price and quantity if beer is legal?
A) $5 per quart and 300 quarts of beer
B) $3 per quart and 500 quarts of beer
C) $3 per quart and 100 quarts of beer
D) $1 per quart and 300 quarts of beer

Question

-Using the above figure, CBL is the cost of breaking the law. What is the equilibrium price and quantity if beer is legal?
A) $5 per quart and 300 quarts of beer 
B) $3 per quart and 500 quarts of beer 
C) $3 per quart and 100 quarts of beer 
D) $1 per quart and 300 quarts of beer

Quizplus · Accepted Answer

The equilibrium price and quantity occur where the supply and demand curves intersect. If beer is legal, the equilibrium is at $3 per quart and 500 quarts of beer.

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