Multiple Choice
The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax is imposed. The government imposes a $10 per unit tax on sellers of MP3 players.
-In the figure above,at the market equilibrium with the tax,marginal benefit ________ marginal cost,and the quantity of MP3 players sold is ________.
A) exceeds; inefficient
B) is below; inefficient
C) is below; efficient
D) exceeds; efficient
E) equals; efficient
Correct Answer:
Verified
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