Question

Table 9A.5 Refer to Table 9A.5. If a $2?per?unit cost of breaking the law is imposed on both the buyers and the sellers, the new price is $________ and the new equilibrium quantity is ________ units.

A) 8; 400
B) 8; 300
C) 7; 300
D) 9; 300
E) 8; 200

Answer 1

Without access to the details of Table 9A.5, it is not possible to accurately identify the new equilibrium price and quantity after a $2 per unit cost is imposed due to breaking the law.

Step-by-step explanation:

The question pertains to determining the new equilibrium price and quantity in a market when a $2 per unit cost of breaking the law is imposed on both buyers and sellers. We are asked to use Table 9A.5 to infer this new equilibrium. Unfortunately, without the specific details of Table 9A.5, we cannot provide an accurate response. However, based on the information in the general example presented, you could typically find the new equilibrium by matching the adjusted quantity supplied and demanded after accounting for the external cost (or law in this case), which would be higher than the original price and lower in quantity.