Figure 8-3

-Refer to Figure 8-3.The equilibrium price before the tax is imposed is
A)$24 and the equilibrium quantity is 70.
B)$16 and the equilibrium quantity is 100.
C)$10 and the equilibrium quantity is 70.
D)$8 and the equilibrium quantity is 100.

Question

Figure 8-3
 
-Refer to Figure 8-3.The equilibrium price before the tax is imposed is
A)$24 and the equilibrium quantity is 70. 
B)$16 and the equilibrium quantity is 100. 
C)$10 and the equilibrium quantity is 70. 
D)$8 and the equilibrium quantity is 100.

Quizplus · Accepted Answer

Before the tax is imposed, the equilibrium price is where the supply and demand curves intersect, which is $16, and the equilibrium quantity is 100.

Figure 8-3 -Refer to Figure 8-3.The Equilibrium Price Before the Tax Is