In recent years the cost of producing organic produce

Info icon This preview shows pages 4–5. Sign up to view the full content.

View Full Document Right Arrow Icon
20) In recent years the cost of producing organic produce in the U.S. 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? 20) ______ A) Both the supply and demand curves have shifted to the right.  As a result, there has been an increase in the equilibrium quantity  and an uncertain effect on the equilibrium price. B) The supply curve has shifted to the left and the demand curve has shifted to the right.  As a result, there has been an increase in the  equilibrium price and an uncertain effect on the equilibrium quantity. C) Both the supply and demand curves have shifted to the right.  As a result, there has been an increase in both the equilibrium price  and the equilibrium quantity. D) The supply curve has shifted to the left and the demand curve has shifted to the right.  As a result there has been an increase in the  equilibrium quantity and an uncertain effect on the equilibrium price. Figure 3 - 8 21)  Refer to Figure 3 - 8.   The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the  intersection of  D 1  and  S 1  (point  A ).  If the price of oranges, a substitute for apples, decreases and the wages of apple workers increase,  how will the equilibrium point change? 21) ______ 22)  Refer to Figure 3 - 8 .  The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the  intersection of  D and  S 1  (point  A ).  If there is an increase in the wages of apple workers and an increase in the price of oranges, a  substitute for apples, the equilibrium could move to which point? 22) ______
Image of page 4

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern