Graph 8-1
-According to Graph 8-1, the equilibrium market price before the tax is imposed is:
A)P₃
B)P₂
C)P₁
D)impossible to determine

Name: Graph 8-1 -According to Graph 8-1, the equilibrium market price before the tax is imposed is: A)P₃ B)P₂ C)P₁ D)impossible to determine
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Question

Graph 8-1 
-According to Graph 8-1, the equilibrium market price before the tax is imposed is:
A)P₃ 
B)P₂ 
C)P₁ 
D)impossible to determine

Quizplus · Accepted Answer

The equilibrium market price before the tax is imposed is where the supply and demand curves intersect, which is at point E in the graph. At this point, the price is P₁. Therefore, the correct answer is C) P₁.

Graph 8-1 -According to Graph 8-1, the Equilibrium Market Price Before the Price