The Diagram Below Shows Demand and Supply Curves for Some

question 4

Multiple Choice

The diagram below shows demand and supply curves for some perfectly competitive market. FIGURE 16-2
-Refer to Figure 16-2.Suppose that the marginal benefit curve (MB) includes all social benefits and that there are no externalities in production.In this case,________ for allocative efficiency.

• A)P₁ and Q₁ are appropriate
• B)the price P₁ is appropriate but the quantity Q₁ is too low
• C)the price P₁ is appropriate but the quantity Q₁ is too high
• D)the price P₁ is too low but the quantity Q₁ is appropriate
• E)the price P₁ is too high but the quantity Q₁ is appropriate

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Definitions:

PGA

An acronym that can refer to several concepts; in a biological context, it often stands for phosphoglyceric acid, a 3-carbon molecule formed in the Calvin cycle of photosynthesis.

PGAL

Phosphoglyceraldehyde, an intermediate molecule formed in the photosynthesis and glycolysis metabolic pathways, important in the metabolic process.

NADPH

Nicotinamide adenine dinucleotide phosphate, a coenzyme involved in cellular processes, mainly anabolism and as a reducing agent in anabolic reactions.