Question
In each of the following cases, what will happen to the supply curve of tomatoes? Is it an increase or a decrease in supply? What
In each of the following cases, what will happen to the supply curve of tomatoes? Is it an increase or a decrease in supply? What is the relevant factor to cause the curve shift? Briefly explain.
a) Wages paid to farm workers rise.
b) There is a drop in the price of corn, which can be grown instead of tomatoes.
c) There is a sudden autumn frost before the tomatoes are harvested.
d) A new mechanized tomato-picker is introduced that raises productivity.
e) Producers anticipate that the price of tomatoes will fall soon.
f) Market price of tomato falls.
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