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Figure: Efficient Market Outcome
-(Figure: Efficient Market Outcome) Refer to the figure. The efficient price and quantity are, respectively:

Question

Use the following to answer questions:
Figure: Efficient Market Outcome

-(Figure: Efficient Market Outcome) Refer to the figure. The efficient price and quantity are, respectively:

Quizplus · Accepted Answer

In an efficient market outcome, the price and quantity are determined at the intersection of the supply and demand curves, which is point U1. At this point, price is PS1 and quantity is QS1. Therefore, the efficient price and quantity are P₂ and Q₁, respectively. Option C correctly identifies both the price and quantity.

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