Question

Consider the market for wheat, which is currently in equilibrium. New seeds are introduced that make...

Consider the market for wheat, which is currently in equilibrium. New seeds are introduced that make farming more productive. As a result we would predict that

Group of answer choices

Equilibrium price will decrease

The demand function will shift to the right

Equilibrium quantity will decrease

Equilibrium price will increase

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Homework Answers

Answer #1

Since the given question is from the production side

So supply curve will be affected not the demand curve

Due to new seeds, the farming will become more productive

It means there will be more production of wheat and this will cause the shift of supply curve to the right

Answer is option A

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