Figure 4-5
-Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. Which of the following is true?
A) If the price of pecans is $3 the output will be economically efficient but there will be a deadweight loss.
B) If the price of pecans is $9 consumers will purchase more than the economically efficient output.
C) Both 4,000 pounds and 12,000 pounds are economically inefficient rates of output.
D) If the price of pecans is $3 producers will sell 12,000 pounds of pecans but this output will be economically inefficient.

Question

Figure 4-5 
-Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. Which of the following is true?
A) If the price of pecans is $3 the output will be economically efficient but there will be a deadweight loss. 
B) If the price of pecans is $9 consumers will purchase more than the economically efficient output. 
C) Both 4,000 pounds and 12,000 pounds are economically inefficient rates of output. 
D) If the price of pecans is $3 producers will sell 12,000 pounds of pecans but this output will be economically inefficient.

Quizplus · Accepted Answer

Both 4,000 pounds and 12,000 pounds are economically inefficient rates of output because they do not correspond to the equilibrium quantity where supply equals demand, leading to either excess supply or demand.

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