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

question 328

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. Which of the following is true?

• A) If the price of pecans is $3 the output will be economically efficient but there will be a deadweight loss.
• B) If the price of pecans is $9 consumers will purchase more than the economically efficient output.
• C) Both 4,000 pounds and 12,000 pounds are economically inefficient rates of output.
• D) If the price of pecans is $3 producers will sell 12,000 pounds of pecans but this output will be economically inefficient.

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Definitions:

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