Combined word limit: 500

Suppose there is an introduction of Genetically modified organisms (GMOs) durian breeds that make the trees more productive and require fewer pesticides and fertilisers. Suppose durian buyers believe that GMOs are bad for their health and damage the environment.

(a) Explain, using (an) appropriate diagram(s), the effect of introducing GM durian breeds on the equilibrium price and quantity in the market for durian. [17 marks]

(b) Following the introduction of GM durian breeds, what will happen to durian farmers' total revenue? Explain. [8 marks]