Figure 8.14
-Refer to Figure 8.14.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 nonorganic produce to organic produce will add 5 years to the average life span of consumers?

Question

Figure 8.14 
-Refer to Figure 8.14.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 nonorganic produce to organic produce will add 5 years to the average life span of consumers?

Quizplus · Accepted Answer

Panel A best represents the scenario because it shows a perfectly competitive market where firms are earning short-run economic profits, and the announcement by the Surgeon General would increase demand, shifting the demand curve to the right.

Figure 8.14 -Refer to Figure 8.14.Which Panel Best Represents the Perfectly Competitive