Figure 4-5
-Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $9, what changes in the market would result in an economically efficient output?
A) The price would decrease, the quantity supplied would decrease, and the quantity demanded would increase.
B) The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would decrease.
C) The price would decrease, the demand would increase, and the supply would decrease.
D) The price would increase, the quantity demanded would decrease, and the quantity supplied would increase.

Question

Figure 4-5 
-Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $9, what changes in the market would result in an economically efficient output?
A) The price would decrease, the quantity supplied would decrease, and the quantity demanded would increase. 
B) The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would decrease. 
C) The price would decrease, the demand would increase, and the supply would decrease. 
D) The price would increase, the quantity demanded would decrease, and the quantity supplied would increase.

Quizplus · Accepted Answer

If the price is above equilibrium at $9, the price needs to decrease to reach equilibrium, leading to an increase in quantity demanded and a decrease in quantity supplied, achieving economic efficiency.

Figure 4-5 -Refer to Figure 4-5. the Figure Above Represents the Market