The factors that directly affect the Davis family's profit for growing organiz vegetables to sell are the following two:
- <u>A rise in demand for organic produce</u>: when the demands for a product rises, that means that the selling price for that product will rise as well. This is because of the supply and demand correlation. When the demand grows, the supply lowers, so the products can sell for higher price since there are fewer of them.
- <u>An increase in the cost of farm equipment</u>: if they have to spend more money in equipment, their final profit decreases, that's because they have to spend more money to grow their produce, but the price when they sell it remains the same, unless they rise it. It directly affects the profit.
" A change in the market price for non-organic fruit" can't be considered to DIRECTLY affect their profit, but we could consider it to INDIRECTLY affect it. For example if the price increases, then more people might start buying organic produce, because they might find that the price difference decreases and the benefits of eating organic produce is higher. But this isn't a sure thing, that's why it doesn't apply.
"A sale on organic meats at the market" shouldn't be considered to directly affect the Davis' profit because buying meat doesn't have a correlation to affecting organic produce's profit.
-"An increase in customers at the market" it's not a direct correlation to affecting the profit, so it's ruled out.
