
Scenario 14-3
In March 2000, a study sponsored by the Food Consumer Safety Board found that consumption of irradiated grapefruit increased the health of laboratory rats.As a result of national press coverage of the report, the demand for irradiated grapefruit increased dramatically.Organic farmers were able to switch from organic production of grapefruit to irradiated production with no additional cost.Assume that the grapefruit market satisfies all of the attributes of perfect competition.
-Refer to Scenario 14-3.As a result of the increase in the demand for grapefruit,what would we predict in the short run
A) The production of grapefruit would be at efficient scale.
B) The price of grapefruit would rise.
C) The total cost for existing irradiated grapefruit producers must rise.
D) New producers would enter the market.
Correct Answer:
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Q159: Scenario 14-3
In March 2000, a study sponsored
Q160: Figure 14-9 Q161: Regardless of the cost structure of firms Q162: In the long-run equilibrium of a market Q163: Figure 14-9
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