Question

According to the graph on the right, the equilibrium price in the market before the tax is imposed is

A $3.50 Correct Answer Incorrect Answer
B $5.00 Correct Answer Incorrect Answer
C $6.00 Correct Answer Incorrect Answer
D $8.00 Correct Answer Incorrect Answer
E $9.00 Correct Answer Incorrect Answer

Solution

Equilibrium price is the price where demand equals supply.

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