Peaches and nectarines are substitute goods and both are produced under perfectly competitive conditions.

a. Cyril, a producer in the peach farming industry, discovers a technology that reduces the cost of producing peaches. Explain how this technological innovation is likely to affect each of the following for Cyril.

(i) Quantity of peaches produced

(ii) Price of peaches

b. Now assume that all other peach producing farms adopt Cyril's new technology. Explain how this is likely to affect each of the following in the peach farming industry as a whole.

(i) Price of peaches

(ii) Quantity of peaches produced

c. This new technology is not applicable to the production of nectarines. Explain how the changes that happened in the peach farming industry are likely to affect each of the following in the nectarine trade.

(i) Price of nectarines

(ii) Quantity of nectarines

(iii) Wage rate for nectarine workers

(iv) Number of nectarine workers hired