Figure 14.1
-Refer to Figure 14.1.The figure above represents the market for pecans.Assume that this is a competitive market.At a price of $3,

Question

Figure 14.1 
-Refer to Figure 14.1.The figure above represents the market for pecans.Assume that this is a competitive market.At a price of $3,

Quizplus · Accepted Answer

At a price of $3, the quantity supplied is 8,000 and the quantity demanded is 4,000. Since the price is below the equilibrium price of $6, the marginal benefit of pecans is higher than the marginal cost of producing pecans, and output is inefficiently low. Therefore, choice A is the correct answer.

Figure 14.1 -Refer to Figure 14.1.The Figure Above Represents the Market for the Market