Figure 4-25
Figure 4-25 illustrates the market for gasoline before the government imposes a tax to bring about the efficient level of gasoline production.
-Refer to Figure 4-25.The market equilibrium price of gasoline is ________ per gallon.

Question

Figure 4-25
  Figure 4-25 illustrates the market for gasoline before the government imposes a tax to bring about the efficient level of gasoline production.
-Refer to Figure 4-25.The market equilibrium price of gasoline is ________ per gallon.

Quizplus · Accepted Answer

The market equilibrium price is the price at which the quantity supplied equals the quantity demanded. In Figure 4-25, the equilibrium price is $3.75 per gallon.

Figure 4-25 Figure 4-25 Illustrates the Market for Gasoline Before