Use the Following to Answer Question(s): Markets and Efficiency

Multiple Choice

Use the following to answer question(s) : Markets and Efficiency

-(Exhibit: Markets and Efficiency) Refer to Panel (c) .Given the shift in supply from S₁ to S₂, which of the following statements is (are) true?

A) The rising price tells consumers that the marginal benefit of apples is falling.
B) The marginal benefit of consuming the same amount of apples at a higher price is more than the marginal costs.
C) Consumers cut back on their consumption of apples.
D) All of the above are true.