Use the following supply and demand graph to answer the question below.
In the graph, line S is the current supply of this product, while line S1 is the optimal supply from the society's perspective. If government corrects this externality problem and shifts production to the socially optimal level, then the product price will be equal to
A. 0G.
B. 0D.
C. 0F.
D. 0E.
Answer: A
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For each of the following sets of supply and demand curves, calculate equilibrium price and quantity
a. QD = 1000 - P; QS = P b. QD = 1500 - 2P; QS = 100 + 2P c. QD = 2000 - 3P; QS = -300 + 3P
The conflict between the Vice President of Marketing and her sales staff arises because
a. the sales staff are too willing to offer discounts b. the sales staff does not want to negotiate aggressively enough c. the Vice President wants to negotiate too aggressively d. the Vice President is more willing to offer discounts to make the sale
Economic theory allows us to predict the behavior of a specific person or firm
a. True b. False
What is the difference between a deductible and a co payment as it applies to medical insurance?
What will be an ideal response?