-Refer to the above figure.In the absence of a subsidy,
A)Qd would be demanded and $\mathrm { Q } _ { \mathrm { M } }$ would be supplied.
B)the price Pd would be charged and quantity $\mathrm { Q } _ { \mathrm { M } }$ demanded.
C)the quantity Qo and price Po would prevail in the market.
D)None of the above is correct.

Question

-Refer to the above figure.In the absence of a subsidy,
A)Qd would be demanded and $\mathrm { Q } _ { \mathrm { M } }$ would be supplied. 
B)the price Pd would be charged and quantity $\mathrm { Q } _ { \mathrm { M } }$ demanded. 
C)the quantity Qo and price Po would prevail in the market. 
D)None of the above is correct.

Quizplus · Accepted Answer

In the absence of a subsidy, the market would reach equilibrium at the quantity Qo and price Po, where supply equals demand.

-Refer to the Above Figure QM\mathrm { Q } _ { \mathrm { M } }QM​

-Refer to the Above Figure $\mathrm { Q } _ { \mathrm { M } }$