-Refer to the Above Graph to Answer This Question

question 8

Multiple Choice

-Refer to the above graph to answer this question.If buyers of this product were subsidized by an amount equal to the external benefits,what would be the equilibrium values of price and quantity?

• A)$80 and 40.
• B)$100 and 30.
• C)$100 and 80.
• D)$120 and 70.
• E)$120 and 80.

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Definitions:

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of a stock at a specified price within a specified time period.

Tax Treatment

The application of tax laws and regulations to various financial transactions, determining how they are taxed.

Executive and Company

This term refers to the relationship or contractual agreements between a company's management, particularly its executive officers, and the company itself.

Covenants Restricting

Clauses in loan agreements that impose limits on the actions of the borrower to protect the interests of the lender.