Question

Pak is one of many sellers of green beans in local farmer's markets where consumers are willing to pay more for organically grown green beans than regular green beans. However, buyers cannot verify that any of the green beans for sale are grown organically. As a result:

a. the market price tends to be high because all sellers claim to sell organic green beans.
b. green beans are not sold because there is no trust in the market.
c. most green beans sold will be organic because sellers want to cater to customers.
d. green beans end up selling at low prices because buyers are skeptical.

Answer 1

C. Most green beans sold will be organic because sellers want to cater to customers.

Step-by-step explanation:

In this scenario, the correct answer is option c. Most green beans sold will be organic because sellers want to cater to customers. Since consumers are willing to pay more for organically grown green beans, sellers have an incentive to claim that their beans are organic in order to attract customers and sell their product at a higher price. However, buyers cannot verify if the beans are truly organic, so there may be some skepticism in the market.