Use the Figure Below to Answer the Following Question

question 47

Multiple Choice

Use the figure below to answer the following question.

Figure 17.2.3
-Refer to Figure 17.2.3. The graph provides information about a waste disposal system in a city of 1 million people. If the city installs the efficient capacity, then each person pays ________ in taxes.

• A)$125
• B)$62.50
• C)$250
• D)zero
• E)$31.25

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Definitions:

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount that producers are willing to sell, resulting in a balanced market situation.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity of it that producers are willing and able to supply at that price.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in the market, leading to a state of balance.