Refer to the Graph Below,where MSC Is the Marginal Social

question 81

Multiple Choice

Refer to the graph below,where MSC is the marginal social cost and MSB is the marginal social benefit. If external benefits could be internalized,the competitive equilibrium price would be __________ per unit and the competitive equilibrium quantity would be _______ units.

• A) $10;10
• B) $9;9
• C) $9;11
• D) $8;10
• E) $4;6

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Definitions:

Price Elasticity of Demand

An evaluation of how the requested quantity of a good is influenced by modifications in its cost.

Price Coefficient

A numerical value that represents the degree to which price affects demand or supply for a good or service.

Primary Copper

Copper in its metallic form as found in nature, typically extracted via mining and used as a raw material for further refinement and use in various applications.

Supply Curves

depict how the quantity supplied of a commodity varies as its price changes, assuming other factors remain constant.