The following graph represents the market for a certain good.

-Refer to the graph above.What is the price when the market outcome is Pareto efficient?
A) 7
B) 5
C) 3
D) 1

Question

The following graph represents the market for a certain good.
 
-Refer to the graph above.What is the price when the market outcome is Pareto efficient?
A) 7 
B) 5 
C) 3 
D) 1

Quizplus · Accepted Answer

In a Pareto efficient market outcome, the quantity supplied equals the quantity demanded, which typically occurs where the supply and demand curves intersect. Without seeing the actual graph, the correct answer cannot be determined based on the information given. However, assuming a standard supply and demand model, the price at which the market is Pareto efficient would be where these two curves meet, which is typically represented by a specific price point in such questions. Since the correct answer cannot be determined without the graph, this explanation is based on standard economic theory.

The Following Graph Represents the Market for a Certain Good