-The figure above shows the market for a good with an external benefit.If the market is competitive and the government takes no action,the equilibrium quantity is ________ units and the equilibrium price is ________ per unit.
A) 8; $150
B) 8; $300
C) 10; $250
D) 10; $100
E) 10; $150

Question

-The figure above shows the market for a good with an external benefit.If the market is competitive and the government takes no action,the equilibrium quantity is ________ units and the equilibrium price is ________ per unit.
A) 8; $150 
B) 8; $300 
C) 10; $250 
D) 10; $100 
E) 10; $150

Quizplus · Accepted Answer

In a competitive market without government intervention, the equilibrium is determined by the intersection of the supply and demand curves. The given choice A (8 units at $150) represents such an intersection, assuming the external benefit is not accounted for in the market equilibrium.

-The Figure Above Shows the Market for a Good with an External