Graph 10-2 This graph reflects the market for kiwifruit, where pesticide used by kiwifruit orchardists also unintentionally kills honey bees. -Refer to Graph 10-2. At the private market outcome, quantity Q₁ represents the: A) quantity of kiwifruit consumers will buy B) quantity of kiwifruit and honey consumers will buy C) socially optimal quantity of kiwifruit that should be produced D) optimal price of a kiwifruit from the standpoint of society as a whole

Question

Quizplus · Accepted Answer

Quantity Q₁ represents the quantity of kiwifruit consumers will buy at the private market outcome, which is determined by the intersection of the demand and supply curves. The graph does not provide information on the quantity of honey consumers will buy or the socially optimal quantity of kiwifruit that should be produced. Similarly, the graph does not provide information on the optimal price of a kiwifruit from the standpoint of society as a whole.

Graph 10-2 This Graph Reflects the Market for Kiwifruit, Where