Use the Figure Below to Answer the Following Questions

question 32

Multiple Choice

Use the figure below to answer the following questions.

Figure 17.3.2
-Figure 17.3.2 shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. The equilibrium in an unregulated market is

• A)0 goats.
• B)40 goats.
• C)50 goats.
• D)55 goats.
• E)35 goats.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at different prices.

Substitute Good

A product or service that can be used in place of another to satisfy consumer needs or desires.

Demand Curve

A graph illustrating the quantity of a good that consumers are willing and able to purchase at various prices, typically downward sloping.

Demand Curve

A graph showing the relationship between the price of a good and the amount of it that consumers are willing to purchase at each price point.