Recall Application 5, "Droughts in Australia and the Price of Rice," to answer the following questions:
-The adoption of new technologies used for rice production in response to the high rice prices will ultimately cause the shift of the:

Question

Quizplus · Accepted Answer

The adoption of new technologies used for rice production will increase the supply of rice, shifting the supply curve to the right. This will ultimately cause a decrease in the price of rice, which will result in a movement along the demand curve for rice to a new equilibrium point.