34. The graph below showing the costs and benefits of producing and consuming gasoline. The dark line labeled Sp shows the Supply curve based on producers' costs, and the dark line labeled Dc shows the Demand curve based on the consumers' benefits. (Note, this is the same graph as in #33). Which of the following shows the excess quantity produced by a free market as compared to the social optimum quantity? P p2 ро pl 0 q1 q0 q2 A Is the excess quantity: (A) the distance from q1 to q0; (B) the distance from q1 to q2; (C) the distance from q0 to q2; (D) the distance from p1 to p2; Please put your answer (A), (B), (C), or (D) in the text box. E Sp B Dc C Q
34. The graph below showing the costs and benefits of producing and consuming gasoline. The dark line labeled Sp shows the Supply curve based on producers' costs, and the dark line labeled Dc shows the Demand curve based on the consumers' benefits. (Note, this is the same graph as in #33). Which of the following shows the excess quantity produced by a free market as compared to the social optimum quantity? P p2 ро pl 0 q1 q0 q2 A Is the excess quantity: (A) the distance from q1 to q0; (B) the distance from q1 to q2; (C) the distance from q0 to q2; (D) the distance from p1 to p2; Please put your answer (A), (B), (C), or (D) in the text box. E Sp B Dc C Q
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section: Chapter Questions
Problem 2PA
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