In the Graph Above, the Socially Optimal Price Is

question 4

Multiple Choice

In the graph above, the socially optimal price is

• A)$24
• B)$12
• C)$10
• D)$4

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Definitions:

Utility

In economics, it refers to the satisfaction or benefit derived by consumers from consuming goods and services.

Income

The monetary payment received for work or through investments, including wages, salaries, or dividends.

Consumer Equilibrium

A condition where a consumer has allocated their income in a way that maximizes their utility, given their budget constraints and the prices of goods and services.

Utility

In economics, the total satisfaction received from consuming a good or service.