-(Exhibit: Markets and Efficiency) In Panel (b) demand shifted from D₁ to D₂, reflecting a change in consumer preferences. As the price changes to the new equilibrium price, some producers will:

Question

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When demand shifts due to a change in consumer preferences, it affects the equilibrium price. Producers whose marginal benefit of producing apples falls below their marginal cost will cut back on production. Additionally, the change in price serves as a signal for producers to adjust their production towards goods that are now more valuable to consumers, potentially including goods other than apples. This encompasses all the options provided.

-(Exhibit: Markets and Efficiency) in Panel (B) Demand Shifted from D1

-(Exhibit: Markets and Efficiency) in Panel (B) Demand Shifted from D₁