Use the table below to answer the following questions.
Table 6.5.1
The Market for a Prohibited Good
-Refer to Table 6.5.1.Which one of the following costs of breaking the law imposed on the buyers of the good would reduce the quantity to zero?
A)$1
B)$2
C)$4
D)$6
E)$8

Question

Use the table below to answer the following questions.
Table 6.5.1
The Market for a Prohibited Good 
-Refer to Table 6.5.1.Which one of the following costs of breaking the law imposed on the buyers of the good would reduce the quantity to zero?
A)$1 
B)$2 
C)$4 
D)$6 
E)$8

Quizplus · Accepted Answer

When the cost of breaking the law is equal to or greater than the highest price a buyer is willing to pay, then the quantity demanded of the prohibited good will reduce to zero. In this case, the highest price a buyer is willing to pay is $8, so the cost of breaking the law must be at least $8 to reduce the quantity to zero. Therefore, the answer is E.

Use the Table Below to Answer the Following Questions