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 efficient equilibrium quantity of gasoline is ________ million gallons per month.

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 efficient equilibrium quantity of gasoline is ________ million gallons per month.

Quizplus · Accepted Answer

The efficient equilibrium quantity is where the supply and demand curves intersect. This occurs at a quantity of 32 million gallons per month.

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