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bixtya [17]
2 years ago
11

In recent years the cost of producing organic produce in the United States has decreased largely due technological advancement.

At the same​ time, more and more Americans prefer organic produce over conventional produce. Which of the following best explains the effect of these events in the organic produce​ market?
Social Studies
1 answer:
butalik [34]2 years ago
3 0

Answer:

The equilibrium quantity of organic produce will increase while the change in price will be unambiguous.

Explanation:

An improvement in technology will cause the cost incurred in producing organic products will decline. The producers will be able to produce more at the same cost. This will cause the supply of organic products to increase. The supply curve will move to the right.

At the same time, an increased preference for organic products will cause its demand to increase. As a result, the demand curve will move to the right. This rightward shift in both the demand curve and the supply curve will cause the equilibrium quantity to increase.

The change in the equilibrium price will depend upon the extent of change in demand and supply. If demand increases more than supply, the price will increase. If the supply will increase more than demand, the price will fall. If demand and supply will increase by the same proportion, the price will remain the same.

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