Figure 8.14
-Refer to Figure 8.14.Which panel best represents the perfectly competitive organic produce market in which organic produce is considered a normal good, and the average income level of consumers is rising?

Question

Figure 8.14 
-Refer to Figure 8.14.Which panel best represents the perfectly competitive organic produce market in which organic produce is considered a normal good, and the average income level of consumers is rising?

Quizplus · Accepted Answer

Panel C best represents the perfectly competitive organic produce market in which organic produce is considered a normal good, and the average income level of consumers is rising. This is because, with an increase in income, the demand for normal goods (like organic produce) increases, shifting the demand curve to the right. This results in a higher equilibrium price and quantity, as depicted in Panel C.

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