Exhibit 17.1

-Refer to Exhibit 17.1,which shows a market for electricity.The equilibrium price and output (determined exclusively by private decisions)are _____
A)$0.10 and 75 million kilowatt hours, respectively.
B)$0.15 and 75 million kilowatt hours, respectively.
C)$0.10 and 50 million kilowatt hours, respectively.
D)$0.15 and 50 million kilowatt hours, respectively.
E)less than $0.10 and more than 50 million kilowatt hours, respectively.

Question

Exhibit 17.1
 
-Refer to Exhibit 17.1,which shows a market for electricity.The equilibrium price and output (determined exclusively by private decisions)are _____
A)$0.10 and 75 million kilowatt hours, respectively. 
B)$0.15 and 75 million kilowatt hours, respectively. 
C)$0.10 and 50 million kilowatt hours, respectively. 
D)$0.15 and 50 million kilowatt hours, respectively. 
E)less than $0.10 and more than 50 million kilowatt hours, respectively.

Quizplus · Accepted Answer

The equilibrium price and output are determined by the intersection of the supply and demand curves. According to the given options, $0.10 and 75 million kilowatt hours is the combination that reflects this intersection based on private decisions.

Exhibit 17.1 -Refer to Exhibit 17.1,which Shows a Market for Electricity.The Equilibrium