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Consider the following events: Scientists reveal that
Chapter , Problem 9(choose chapter or problem)
Consider the following events: Scientists reveal that eating oranges decreases the risk of diabetes, and at the same time, farmers use a new fertilizer that makes orange trees produce more oranges. Illustrate and explain what effect these changes have on the equilibrium price and quantity of oranges.
Questions & Answers
QUESTION:
Consider the following events: Scientists reveal that eating oranges decreases the risk of diabetes, and at the same time, farmers use a new fertilizer that makes orange trees produce more oranges. Illustrate and explain what effect these changes have on the equilibrium price and quantity of oranges.
ANSWER:Step 1 of 2
The equilibrium level is determined by the market forces according to the prevailing demand and supply conditions. The equilibrium level can be changed by the changes in the demand and supply curves of the commodities.