-Refer to the above figure. In the absence of a subsidy,
A)Qd would be demanded and QM would be supplied.
B)the price Pd would be charged and quantity QM demanded.
C)the quantity Qₒ and price Pₒ would prevail in the market.
D)None of the above is correct.

Question

-Refer to the above figure. In the absence of a subsidy,
A)Qd would be demanded and QM would be supplied. 
B)the price Pd would be charged and quantity QM demanded. 
C)the quantity Qₒ and price Pₒ would prevail in the market. 
D)None of the above is correct.

Quizplus · Accepted Answer

In the absence of a subsidy, the market would reach equilibrium at the quantity Qₒ and price Pₒ, where supply equals demand.

-Refer to the Above Figure