Figure 4-5 -Refer to Figure 4-5. the Figure Above Represents the Market

question 227

Multiple Choice

Figure 4-5
-Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $9, what changes in the market would result in an economically efficient output?

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

---

Definitions:

Capital Budget Expenditures

Outlays of funds by a company for major investments or acquisitions intended to drive future growth.

Compliance

Adherence to laws, regulations, guidelines, and specifications relevant to its business processes.

Environmental Issues

Concerns related to the preservation of natural resources and the minimization of pollution and waste.

Opportunity Cost of Capital

The return forgone by investing in a project rather than in the financial market or alternate investments.