Figure 4-24

-Refer to Figure 4-24.The equilibrium price before the tax is imposed is
A)P₁.
B)P₂.
C)P₃.
D)None of the above is correct.

Name: Figure 4-24 -Refer to Figure 4-24.The equilibrium price before the tax is imposed is A)P₁. B)P₂. C)P₃. D)None of the above is correct.
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Question

Figure 4-24
 
-Refer to Figure 4-24.The equilibrium price before the tax is imposed is
A)P₁. 
B)P₂. 
C)P₃. 
D)None of the above is correct.

Quizplus · Accepted Answer

The equilibrium price before the tax is imposed is determined by the intersection of the demand curve (D) and the supply curve (S). This occurs at point A, where the price is P₂.

Figure 4-24 -Refer to Figure 4-24.The Equilibrium Price Before the Tax Is