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Figure: Market Changes
-(Figure: Market Changes) Refer to the figures. If these figures represent the market for asparagus, which figure shows the effect of a new disease-resistant asparagus seed?

Question

Use the following to answer questions:
Figure: Market Changes 
-(Figure: Market Changes) Refer to the figures. If these figures represent the market for asparagus, which figure shows the effect of a new disease-resistant asparagus seed?

Quizplus · Accepted Answer

Figure B shows an increase in the supply of asparagus, which in turn drives the market equilibrium price down and increases the market equilibrium quantity. This is the most likely effect of a new disease-resistant asparagus seed, as it would allow for greater production of asparagus at a lower cost. The other figures do not show a significant increase in supply or a shift in the demand curve, so they are not likely to represent the effect of a new disease-resistant asparagus seed.

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