Demand prices exceeds supply prices

When only Q₀ papayas reached the market in that case: (1) desperate buyers would be willing to pay only P₁ per papaya. (2) production costs would exceed P₂ per papaya. (3) buyers would be indifferent regarding getting additional papaya. (4) the papaya surplus would generate widespread famine. (5) demand prices for papayas would exceed supply prices.

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