The Figure Above Shows the Demand (D) and Supply (S)

question 219

Multiple Choice

The figure above shows the demand (D) and supply (S) curves for insulin before any tax is imposed. The government imposes a $0.20 a dose tax on sellers of insulin.
-Based on the figure above,at the market equilibrium with the tax,marginal benefit ________ marginal cost,and the quantity of insulin sold is ________.

• A) equals; efficient
• B) exceeds; inefficient
• C) is below; inefficient
• D) is below; efficient
• E) exceeds; efficient

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