A beneficial technological change is developed in the production of cranberries.At the same time,scientists discover that cranberries have significant health benefits.This will result in:
A)an increase in both the equilibrium price and quantity in the cranberry market.
B)an increase in the equilibrium quantity and an uncertain effect on the equilibrium price of cranberries.
C)a decrease in both the equilibrium price and quantity in the cranberry market.
D)a decrease in the equilibrium price and an uncertain effect on the equilibrium quantity of cranberries.

Question

Quizplus · Accepted Answer

The technological change in production will increase the supply of cranberries, leading to a decrease in the equilibrium price. However, the discovery of health benefits will increase the demand for cranberries, leading to an increase in the equilibrium quantity. The net effect on the equilibrium price is uncertain, but the equilibrium quantity will increase. Therefore, option B is the best choice.

A Beneficial Technological Change Is Developed in the Production of Cranberries.At