Question

What will happen to the equilibrium price and quantity of Romaine Lettuce if a new fertilizer increases yields and makes the lettuce cheaper to produce? Group of answer choices Quantity will rise, so price will fall, causing demand to rise. The increase in demand will cause price to rise back up. Price will fall so firms will decrease production, causing equilibrium quantity to fall too. Supply will shift right, so equilibrium price will fall and equilibrium quantity will rise. Price will fall, so demand will rise causing equilibrium price and quantity to rise.

Answer 1

Answer:

What will happen to the equilibrium price and quantity of Romaine Lettuce if a new fertilizer increases yields and makes the lettuce cheaper to produce? Group of answer choices Quantity will rise, so price will fall, causing demand to rise. The increase in demand will cause price to rise back up. Price will fall so firms will decrease production, causing equilibrium quantity to fall too. Supply will shift right, so equilibrium price will fall and equilibrium quantity will rise. Price will fall, so demand will rise causing equilibrium price and quantity to rise.