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Figure 4-9
-Refer to Figure 4-9.The graphs show the demand for cigarettes.In Panel (b) ,the arrows are consistent with which of the following events?
Efficient Allocation
The optimal distribution of resources among different uses, ensuring that resources are utilized in a way that maximizes overall benefit or utility.
Excess Capacity
A situation where a firm is producing at a lower scale of output than it has been designed for, often leading to inefficiencies.
Underallocation
The insufficient provision of resources to areas where they can be most efficiently or effectively used, often leading to inefficiencies.
Product Variety
The assortment or range of different products that a seller offers, catering to diverse customer preferences and enhancing market competitiveness.
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