-(Exhibit: Markets and Efficiency) Refer to Panel (C)

question 209

Multiple Choice

-(Exhibit: Markets and Efficiency) Refer to Panel (c) . Given the shift in supply from S₁ to S₂, which of the following statements is (are) true?

• A) The rising price tells consumers that the marginal benefit of apples is falling.
• B) The marginal benefit of consuming the same amount of apples at a higher price is more than the marginal costs.
• C) Consumers cut back on their consumption of apples.
• D) All of the above are true.

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