Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $9, what changes in the market would result in an economically efficient output?
A) The price would decrease, the demand would increase, and the supply would decrease.
B) The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would decrease.
C) The price would decrease, the quantity supplied would decrease, and the quantity demanded would increase.
D) The price would increase, the quantity demanded would decrease, and the quantity supplied would increase.
C
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If, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will
A. fall, causing households and businesses to hold more money. B. rise, causing households and businesses to hold more money. C. fall, causing households and businesses to hold less money. D. rise, causing households and businesses to hold less money.
The airline industry is best classified as:
A) an oligopoly. B) a monopoly. C) perfectly competitive. D) monopolistically competitive
Which of the following are capital goods?
a. land and raw materials b. all manufactured goods c. automobiles and houses d. factories and machinery e. all goods consumed by both firms and households
According to Malthusian population theory,
A. the world's food supply increases geometrically. B. the world's population tends to grow geometrically. C. a psychological standard of living regulates population growth. D. population growth is an unimportant determinant of standards of living.