The Following Questions Refer to the graph below.
-Society's net benefits are maximized when price and quantity in the market are

Question

The Following Questions Refer to the graph below. 
-Society's net benefits are maximized when price and quantity in the market are

Quizplus · Accepted Answer

Society's net benefits are maximized at the intersection of the demand and supply curves, which is at a price of $12 and a quantity of 14. This is the point where the marginal benefit for society (represented by the demand curve) is equal to the marginal cost for society (represented by the supply curve). At any other price/quantity combination, there would be either a surplus or a shortage, which would result in deadweight loss and reduce society's net benefits.

The Following Questions Refer to the Graph Below