The figure given below shows the demand and supply curves of automobiles.Figure 13.3
In the figure,
D: Demand curve of automobiles
S: Supply of automobiles prior to the tax
S+t: Supply of automobiles after the tax

-According to Figure 13.3, the market attains equilibrium before the tax is imposed at:

Question

The figure given below shows the demand and supply curves of automobiles.Figure 13.3
In the figure,
D: Demand curve of automobiles
S: Supply of automobiles prior to the tax
S+t: Supply of automobiles after the tax
 
-According to Figure 13.3, the market attains equilibrium before the tax is imposed at:

Quizplus · Accepted Answer

In economic models, market equilibrium is achieved at the point where the supply and demand curves intersect, indicating the price at which the quantity supplied equals the quantity demanded. Without seeing Figure 13.3, the typical representation in such models would place the equilibrium at an initial point before any external interventions like taxes are imposed. Therefore, the correct answer is based on the common understanding of economic principles regarding market equilibrium.

The Figure Given Below Shows the Demand and Supply Curves