Figure 7.14
-Refer to Figure 7.14.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 7.14 
-Refer to Figure 7.14.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 an increase in demand due to the announcement, leading to higher prices and short-run economic profits for firms in a perfectly competitive market.

Figure 7.14 -Refer to Figure 7.14.Which Panel Best Represents the Perfectly Competitive