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1. The key condition for equilibrium to occur in a market is:
A. the demand curve equals the supply curve.
B. quantity demanded equals quantity supplied.
C. price equals quantity.
D. demand for one good equals demand for all other goods.
2. Without taxes, the market price per bag of apples is $5. With a $2 tax per bag of apples, buyers now pay $5.75 per bag. What is the final price per bag of apples received by sellers?
A. $5.00
B. $7.75
C. $3.00
D. $3.75
A demand curve that is horizontal indicates that the commodity
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