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Use the Following to Answer Question(s)

Question 38

Multiple Choice

Use the following to answer question(s) :
Exhibit: The Market for Carrots
Use the following to answer question(s) :  Exhibit: The Market for Carrots    -(Exhibit: The Market for Carrots)  Assume that this is a perfectly competitive market and the original price is determined by D<sub>1</sub> and S. If the demand shifts to D<sub>2</sub>, any firm could enter this market and: A)  sell all it wants to sell at 40 cents a pound. B)  sell all it wants to sell at 30 cents a pound. C)  be a price setter. D)  would probably set its price just above 30 cents a pound.
-(Exhibit: The Market for Carrots) Assume that this is a perfectly competitive market and the original price is determined by D1 and S. If the demand shifts to D2, any firm could enter this market and:


A) sell all it wants to sell at 40 cents a pound.
B) sell all it wants to sell at 30 cents a pound.
C) be a price setter.
D) would probably set its price just above 30 cents a pound.

Correct Answer:

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