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?
A) Panel A
B) Panel B
C) Panel C
D) Panel D

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?
A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D

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