-(Exhibit: Markets and Efficiency) in Panel (B) Demand Shifted from D₁

Multiple Choice

-(Exhibit: Markets and Efficiency) In Panel (b) demand shifted from D₁ to D₂, reflecting a change in consumer preferences. As the price changes to the new equilibrium price, some producers will:

A) find that their marginal benefit of producing apples is below their marginal cost.
B) cut back on apple production.
C) respond to the signal sent by consumers and start to produce other goods that are more valuable than apples.
D) do all of the above.