Figure 8.2 -Refer to Figure 8.2. The market equilibrium is Q 1 . Point Q 2 represents the optimal point of production. To reach Q 2 ,

A subsidy to consumers would increase demand, shifting the demand curve to the right, thus moving the market towards the optimal production point Q2.

Figure 8.2 -Refer to Figure 8.2. The market equilibrium is Q 1 . Point Q 2 represents the optimal point of production. To reach Q 2 ,

A subsidy to consumers would increase demand, shifting the demand curve to the right, thus moving the market towards the optimal production point Q2.

Solved

Figure 8.2 -Refer to Figure 8.2. the Market Equilibrium Is Q₁. Point

Question 25

Multiple Choice

Figure 8.2 -Refer to Figure 8.2. The market equilibrium is Q<sub>1</sub>. Point Q<sub>2 </sub>represents the optimal point of production. To reach Q<sub>2</sub>, A) production of the good could be taxed. B) a subsidy could be given to consumers. C) consumption of the good could be taxed. D) the industry producing the good should operate as a cartel. Figure 8.2
-Refer to Figure 8.2. The market equilibrium is Q₁. Point Q₂represents the optimal point of production. To reach Q₂,

A) production of the good could be taxed.
B) a subsidy could be given to consumers.
C) consumption of the good could be taxed.
D) the industry producing the good should operate as a cartel.

Correct Answer: