Refer to the Provided Supply and Demand Graph for a Product

question 64

Multiple Choice

Refer to the provided supply and demand graph for a product. 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)G.
• B)F.
• C)E.
• D)D.

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Definitions:

Balanced Equation

A chemical equation in which the number of atoms for each element is the same on both the reactant and product sides.

Propanol

An alcohol with the chemical formula C3H8O, used as a solvent and antiseptic.

Balanced Equation

A chemical equation where the number of atoms for each element is equal on both the reactant and product sides, indicating conservation of mass.

Methane Gas

A colorless, odorless flammable gas that is the simplest alkane, consisting of one carbon atom and four hydrogen atoms, widely used as a fuel.