cientists have developed a bacteria that they believe will lower the freezing point of agricultural products. This innovation co
uld save farmers $1 billion a year in crops now lost to frost damage. If this technology becomes widely used, what will happen to the equilibrium price and quantity in, for example, the potato market?
1 answer:
Answer:
equilibrium price would fall and equilibrium quantity would increase
Explanation:
The discovery would reduce the amount of crops now lost to frost damage and increase the supply of crops e.g. potato.
As a result of the increase in supply, there would be an excess of supply over demand equilibrium price would fall and quantity would increase
Please check the attached image for a graph showing increase in supply
You might be interested in