Use the Figure Below to Answer the Following Questions

question 11

Multiple Choice

Use the figure below to answer the following questions.

Figure 16.3.1
-Refer to Figure 16.3.1. The figure shows the marginal private benefit curve, the marginal social benefit curve, and the market supply curve. If a subsidy is granted that generates an efficient quantity, then the quantity produced is

• A)zero.
• B)Q₁.
• C)Q₂.
• D)Q₃.
• E)greater than Q₃.

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