Figure 8-7
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-7.Before the tax is imposed,the equilibrium price is
A)$32,and the equilibrium quantity is 15.
B)$24,and the equilibrium quantity is 15.
C)$24,and the equilibrium quantity is 25.
D)$16,and the equilibrium quantity is 15.

Question

Figure 8-7
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-7.Before the tax is imposed,the equilibrium price is
A)$32,and the equilibrium quantity is 15. 
B)$24,and the equilibrium quantity is 15. 
C)$24,and the equilibrium quantity is 25. 
D)$16,and the equilibrium quantity is 15.

Quizplus · Accepted Answer

The equilibrium price and quantity are determined where the supply and demand curves intersect. According to the given options, $24 and a quantity of 25 match this intersection point.

Figure 8-7 the Vertical Distance Between Points a and B Represents a Represents