A chemical factory dumps waste into a river.The figure above shows the demand curve for the chemical (D)and the marginal private cost (MC)and marginal social cost (MSC)of producing it.
-In the figure,the unregulated market equilibrium occurs at a price of ________ a ton and quantity of ________ tons.
A)$100;4,000
B)$150;2,000
C)$150;4,000
D)$225;4,000
E)$100;2,000

Question

A chemical factory dumps waste into a river.The figure above shows the demand curve for the chemical (D)and the marginal private cost (MC)and marginal social cost (MSC)of producing it.
-In the figure,the unregulated market equilibrium occurs at a price of ________ a ton and quantity of ________ tons.
A)$100;4,000 
B)$150;2,000 
C)$150;4,000 
D)$225;4,000 
E)$100;2,000

Quizplus · Accepted Answer

The unregulated market equilibrium occurs at the intersection of the supply and demand curves. The supply curve is upward sloping, and the demand curve is downward sloping. The equilibrium price is the price at which the quantity supplied equals the quantity demanded. The equilibrium quantity is the quantity that is bought and sold at the equilibrium price. In the figure, the equilibrium price is $100 per ton, and the equilibrium quantity is 4,000 tons.

A Chemical Factory Dumps Waste into a River