Figure 8-6
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-6.Without a tax,the equilibrium price and quantity are
A)$16 and 300.
B)$10 and 600.
C)$10 and 300.
D)$6 and 300.

Question

Figure 8-6
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-6.Without a tax,the equilibrium price and quantity are
A)$16 and 300. 
B)$10 and 600. 
C)$10 and 300. 
D)$6 and 300.

Quizplus · Accepted Answer

The equilibrium price and quantity without a tax are determined where the supply and demand curves intersect, which is at $10 and 600 units.

Figure 8-6 the Vertical Distance Between Points a and B Represents a Represents