-(Exhibit: Markets and Efficiency) in Panel (B) Demand Shifted from D₁

question 78

Multiple Choice

-(Exhibit: Markets and Efficiency) In Panel (b) demand shifted from D₁ to D₂, reflecting a change in consumer preferences. The price of apples will change to the new equilibrium price:

• A) where the marginal benefit of apples is again equal to the marginal cost.
• B) of $0.70.
• C) where an efficient solution is again achieved.
• D) that is described by all of the above.

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