Figure 9-16

-Refer to Figure 9-16.Which panel best represents the perfectly competitive organic produce market in which some firms are earning short-run economic profits,and the Surgeon General announces that switching from non-organic produce to organic produce will add 5 years to the average life span of consumers?

Question

Figure 9-16
 
-Refer to Figure 9-16.Which panel best represents the perfectly competitive organic produce market in which some firms are earning short-run economic profits,and the Surgeon General announces that switching from non-organic produce to organic produce will add 5 years to the average life span of consumers?

Quizplus · Accepted Answer

Panel A likely represents the scenario where the demand for organic produce increases due to the Surgeon General's announcement, leading to higher prices and short-run economic profits for firms in a perfectly competitive market.

Figure 9-16 -Refer to Figure 9-16.Which Panel Best Represents the Perfectly Competitive