Refer to the graph below.This society could reach point F when there is a(n):

A) increase in the monetary price of apple pie.
B) credible new study that shows blueberries reduce the risk of heart attack.
C) increase in technology that makes pie bakers more efficient.
D) new regulation that makes pie baking more costly.
E) increase in the monetary price of blueberry pie.

Question

Refer to the graph below.This society could reach point F when there is a(n):

A) increase in the monetary price of apple pie. 
B) credible new study that shows blueberries reduce the risk of heart attack. 
C) increase in technology that makes pie bakers more efficient. 
D) new regulation that makes pie baking more costly. 
E) increase in the monetary price of blueberry pie.

Quizplus · Accepted Answer

Point F represents a higher level of societal welfare compared to other points on the graph. This can only be achieved by an increase in the efficiency of pie-making technology, as it leads to a decrease in the cost of producing pies and a consequent increase in consumer surplus. This option is the only one that can increase societal welfare without affecting the market equilibrium price and quantity of pies. The other options would lead to an increase in the monetary price of pies, which would decrease consumer surplus and lead to a lower level of societal welfare.

Refer to the Graph Below