Question: A graph with price on the vertical axis and quantity on the horizontal axis. There is an upward sloping supply curve that intersects with a
A graph with price on the vertical axis and quantity on the horizontal axis. There is an upward sloping supply curve that intersects with a downward sloping demand curve. The curves cross where the price is $ and the quantity demanded and the quantity supplied are units. At a price of $ the quantity demanded is units and the quantity supplied is units. When the price is $ the quantity demanded and supplied are and respectively.
The graph above shows the market for lemonade. At a price of $
Group of answer choices
the marginal cost of lemonade is greater than the marginal benefit; therefore, output is inefficiently low.
the marginal benefit of lemonade is greater than the marginal cost; therefore, output is inefficiently low.
the marginal benefit of lemonade is greater than the marginal cost; therefore, output is inefficiently high.
producers should lower the price to $ in order to sell the quantity demanded of
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