Question
In a tomato market, 5 million kg are supplied annually at a price of $ 1 per kg , 7 million kg at a
In a tomato market, million kg are supplied annually at a price of $ per kg million kg at a price of $ and
million kg at a price of $
a Draw a graph showing this market supply curve, S Plot three points to draw this curve.
b What will happen to the supply of tomatoes if
i wages paid to farm workers rise;
ii there is a drop in the price of corn, which can be cultivated instead of tomatoes;
iii. there is a sudden early autumn frost before the tomatoes are harvested;
iv a new mechanized tomatopicker is introduced that raises efficiency;
v producers anticipate that the price of tomatoes will soon fall.
c If the quantity supplied of tomatoes doubles at every price, what will be the effect on the market supply
curve? Draw this new market curve, S on your graph. Plot three points to draw this curve.
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