Figure 4-4 -Refer to Figure 4-4.The Figure Above Represents the Market for Represents

question 182

Multiple Choice

Figure 4-4

-Refer to Figure 4-4.The figure above represents the market for pecans.Assume that this is a competitive market.If the price of pecans is $3, what changes in the market would result in an economically efficient output?

• A)The price would increase, the quantity supplied would decrease, and the quantity demanded would increase.
• B)The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would increase.
• C)The price would increase, the demand would decrease, and the supply would increase.
• D)The price would increase, the quantity demanded would decrease, and the quantity supplied would increase.

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Definitions:

Profitability

The ability of a business to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.

Distribution Channel

The pathway through which goods and services travel from the producer to the consumer, including any intermediaries such as distributors, wholesalers, and retailers.

International Markets

Marketplaces beyond a company's home country borders where it can engage in trade or offer its products and services.

Competitive Advantage

A unique attribute or condition that allows an entity to outperform its competitors.