Question

As a result of technological innovation, automated water pumps are being installed on the farms of Kenyan tomato farmers. As a result of the increased use of automated water pumps, the equilibrium price of tomatoes will:

Answer 1

Answer: Fall due to increase in supply

Explanation:

The automated water pumps will help in irrigation of tomatoes as a result of this, sooner or later the problem of irrigation will be solved and there will be more production of tomatoes.

If the demands remains unchanged in the market for the tomatoes then it will lead to lower equilibrium price and the quantity increases.

Due to the automated water pump there will be a rise in the quantity of the tomatoes so the price equilibrium will fall.