Figure 7.14
-Refer to Figure 7.14.Which panel best represents the perfectly competitive organic produce market in which organic produce is considered a normal good,and the average income level of consumers is rising?

Question

Figure 7.14 
-Refer to Figure 7.14.Which panel best represents the perfectly competitive organic produce market in which organic produce is considered a normal good,and the average income level of consumers is rising?

Quizplus · Accepted Answer

Panel C represents the perfectly competitive organic produce market in which organic produce is considered a normal good, and the average income level of consumers is rising. As income rises, demand for normal goods increases, shifting the demand curve to the right. In a perfectly competitive market, this leads to an increase in both price and quantity.

Figure 7.14 -Refer to Figure 7.14.Which Panel Best Represents the Perfectly Competitive