Figure 8-4
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-4.The equilibrium price before the tax is imposed is
A)$12,and the equilibrium quantity is 35.
B)$8,and the equilibrium quantity is 50.
C)$5,and the equilibrium quantity is 35.
D)$5,and the equilibrium quantity is 50.

Question

Figure 8-4
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-4.The equilibrium price before the tax is imposed is
A)$12,and the equilibrium quantity is 35. 
B)$8,and the equilibrium quantity is 50. 
C)$5,and the equilibrium quantity is 35. 
D)$5,and the equilibrium quantity is 50.

Quizplus · Accepted Answer

The equilibrium price and quantity are determined where the supply and demand curves intersect. According to the given options, $8 and 50 units match the typical equilibrium point before a tax is imposed.

Figure 8-4 the Vertical Distance Between Points a and B Represents a Represents