Question

What is the equilibrium quantity before tax?

1) Per-unit tax price
2) Producers receive before tax
3) Cannot be determined
4) Not enough information provided

Answer 1

In a world without trade, the equilibrium price and quantity in each country can be determined by analyzing the supply and demand curves.

Step-by-step explanation:

In a world without trade, the equilibrium price and quantity in each country can be determined by analyzing the supply and demand curves. The equilibrium price is the price at which the quantity demanded equals the quantity supplied, and the equilibrium quantity is the quantity bought and sold at that price.

By examining the supply and demand curves, we can identify the point at which they intersect, which represents the equilibrium price and quantity. This is where the quantity demanded equals the quantity supplied, with no taxes or external factors affecting the market.

Therefore, in a world without trade, the equilibrium price and quantity can be determined by analyzing the supply and demand curves.