Graph 10-3 This graph reflects the market for kiwifruit, where pesticide used by kiwifruit orchardists also unintentionally kills honey bees.
-Refer to Graph 10-3.What price and quantity combination best represents the optimum price and number of kiwifruit trays that should be produced?

Question

Graph 10-3  This graph reflects the market for kiwifruit, where pesticide used by kiwifruit orchardists also unintentionally kills honey bees.
-Refer to Graph 10-3.What price and quantity combination best represents the optimum price and number of kiwifruit trays that should be produced?

Quizplus · Accepted Answer

The optimum price and quantity combination is where the supply and demand curves intersect, indicating market equilibrium. This point ensures that the quantity of kiwifruit trays produced matches the quantity demanded at price P₂ and quantity q₀.

Graph 10-3 This Graph Reflects the Market for Kiwifruit