-(Exhibit: Markets and Efficiency) In Panel (b) demand shifted from D₁ to D₂, reflecting a change in consumer preferences. The price of apples will change to the new equilibrium price: A) where the marginal benefit of apples is again equal to the marginal cost. B) of $0.70. C) where an efficient solution is again achieved. D) that is described by all of the above.

Question

Quizplus · Accepted Answer

When demand shifts due to a change in consumer preferences, the new equilibrium price is established where the marginal benefit (demand) equals the marginal cost (supply), ensuring an efficient allocation of resources. Thus, all the options provided describe aspects of reaching the new equilibrium price.

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

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