Question

What effect would an insect resistant pesticide that causes the crop to be infested to only...

What effect would an insect resistant pesticide that causes the crop to be infested to only half of what it was last year have on supply demand and equllibrium shifts?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The pesticide which lowers crop infestation rate will increase crop harvest, which will increase market supply. This will shift the supply curve toward right, decreasing price and increasing quantity.

In following graph, D0 & S0 are initial demand & supply curves intersecting at point A with initial price P0 and quantity Q0. When supply rises, S0 shifts right to S1, intersecting D0 at point B with lower price P1 and higher quantity Q1.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
One of the problems associated with pesticide use is the development of resistance. The first year...
One of the problems associated with pesticide use is the development of resistance. The first year that a farmer uses a pesticide on their crops, they see a great result: the insects are killed, and crop yield is increased. However, as the same pesticide is used year after year, it seems to have less and less effect on the population. Why does this happen? Below are three possible explanations: post in your answer which one you think is correct. (It’s...
A crop plant was susceptible to a fungal disease. However, a breeder found one plant that...
A crop plant was susceptible to a fungal disease. However, a breeder found one plant that was resistant. Pure lines were constructed (LSus and LR1) and crossed reciprocally. In both crosses the F1 was resistant. After inter-crossing of the F1 generation the F2 segregated into 281 resistant and 219 susceptible plants. A) Suggest a mode of inheritance and use a statistical test to support you conclusion. B) What segregation is expected if the F1 would have been backcrossed to LSus?...
Suppose the economy's real interest rate is reduced. What initial effect would this have? Suppose there...
Suppose the economy's real interest rate is reduced. What initial effect would this have? Suppose there is a major increase in federal spending for health care (with no increase in taxes). What initial effect would this have? Suppose personal income taxes are reduced by 10% (with no change in government spending). What initial effect would this have? Suppose labor productivity increases (with no change in nominal wages). What initial effect would this have? Suppose nominal wages increase by 12% (with...
1. What would happen to the aggregate supply curve if worker productivity increased as a result...
1. What would happen to the aggregate supply curve if worker productivity increased as a result of increased training and education?    2. Which of the following could lead to inflation?         An increase in aggregate supply         An increase in aggregate demand         A decrease in aggregate supply         A decrease in aggregate demand    3. If the price level rises and the money wage rate stays the same, what effect will this have upon labor demanded and production?...
1.Suppose the liquidity of corporate bonds increases. What would be the major effect. Why? -Increase in...
1.Suppose the liquidity of corporate bonds increases. What would be the major effect. Why? -Increase in demand for loanable funds (increase in supply of bonds)          -Decrease in demand for loanable funds (decrease in supply of bonds)   -Increase in supply of loanable funds (increase in demand for bonds) -Decrease in supply of loanable funds (decrease in demand for bonds) 2. Suppose the government reduces taxes but holds government spending constant, thus increasing the government budget deficit. What would be the...
What would be the effect of each of the following on the demand for Chevrolets in...
What would be the effect of each of the following on the demand for Chevrolets in the United States? In each case, identify the responsible determinant of demand and briefly describe the effect on demand. a. The price of Fords plummets. b. Consumers believe that the price of Chevrolets will rise next year. c. The incomes of Americans rise. d. The price of gasoline falls dramatically. e. A change in the price of Chevrolets
Test 5 #1-5 (1) What would be the effect of an increase in the demand for...
Test 5 #1-5 (1) What would be the effect of an increase in the demand for loanable funds at every interest rate? Interest rates would rise. Interest rates would fall. There would be no effect on interest rates, because the supply of loanable funds would increase by the same amount. None of the above          (2) The demand curve for loanable funds represents the behavior of households. foreigners. the government. businesses.          (3) A goldsmith need...
1.Which of the following would remove the effect of inflation as it measures the value of...
1.Which of the following would remove the effect of inflation as it measures the value of all national output? I. Real gross domestic product (GDP) 11. Nominal GDP (A) I only (B) II only (C) Both I and II (D) Neither I nor II ........................................ 2. In a typical recession, I. potential output exceeds actual output II. real gross domestic product is rising (A) I only (B) II only (C) Both I and II (D} Neither I nor II ..................................................
What do you think would be the effect on the equilibrium price and quantity of marijuana...
What do you think would be the effect on the equilibrium price and quantity of marijuana if its sale and consumption were legalized in canada? Will the Supply Curve shift, and if so, to which direction? How about the Demand curve? Will it shift and to which direction? What will happen to price and quantity exchanged?
What do you think would be the effect on the equilibrium price and quantity of marijuana...
What do you think would be the effect on the equilibrium price and quantity of marijuana if its sale and consumption were legalized? Will the Supply Curve shift, and if so, to which direction? How about the Demand curve? Will it shift, and if so, to which direction? What will happen to price and quantity exchanged?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT